Crypto Investigation Unveils $35M Laundered in DMM Bitcoin Hack
Recent findings from a crypto investigation reveal that $35 million of the $305 million stolen in the DMM Bitcoin hack has been laundered. The laundering process involved transferring funds through the Huione Guarantee online marketplace in July 2024. The scheme bears similarities to the tactics employed by the notorious Lazarus Group, showcasing signs of off-chain activity orchestrated by the cybercriminal organization.
Systematic Money Laundering Process
The laundering of the stolen funds was meticulously planned and executed. Here is a breakdown of the systematic process:
- Bitcoin obtained from the hack is transferred to a mixing service to conceal its origin.
- The mixed Bitcoin is then cashed out to a new address.
- Funds are shifted from Bitcoin to Ethereum or Avalanche using THORChain, threshold, or the Avalanche bridge.
- The laundered Bitcoin is exchanged for USDT before further conversion.
- Finally, the USDT is sent to the Huione Guarantee marketplace.
The Involvement of the Lazarus Group
There are striking resemblances between the hacking and laundering techniques employed in the DMM Bitcoin hack and those attributed to the Lazarus Group, a cybercriminal organization linked to North Korea. The group’s involvement is evident in their shared laundering methods and off-chain activities.
Tether Takes Action Against Stolen Funds
Over the weekend, Tether identified a wallet with $29.6 million USDT meant for the Tron network, cutting ties with the wallet that received $14 million from the DMM Bitcoin heist over three days. This move by Tether aims to freeze the circulation of the stolen funds and prevent further laundering through the platform.
Huione Guarantee’s Role in Money Fraud
Huione Guarantee has emerged as a hub for illicit financial activities in South East Asia. The platform has been utilized by criminals for money laundering, including cases such as the infamous pig butchering fraud. A recent report by blockchain analytics firm Elliptic revealed that Huione merchants have facilitated $11 billion in transaction volumes, with connections to the Cambodian government, making it challenging for authorities to intervene.
Need for Enhanced Regulatory Oversight
The exposure of large sums of illicit funds passing through Huione, such as the $31 million from the Fintoch investment scam, underscores the necessity for stricter regulatory measures and anti-money laundering controls to thwart criminal activities facilitated by the platform.
Closing Mechanisms to Combat Money Laundering
As the prevalence of money laundering through online marketplaces like Huione Guarantee continues to rise, authorities and regulatory bodies must implement stringent measures to combat illicit financial activities. Collaborative efforts between law enforcement agencies and financial institutions are crucial in safeguarding the integrity of the crypto space and preventing further exploitation by criminals.
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