Cybercrime Group Lazarus Group Shifts to YoMix
A recent Chainalysis report reveals that the notorious Lazarus Group has adapted its crypto laundering methods by moving to YoMix after the crackdown on the Sinbad mixer. This shift highlights the group’s ability to innovate and adjust to regulatory pressures and law enforcement actions against money laundering tools in the crypto space.
Change in Crypto Money Laundering Landscape
In 2023, there was a significant change in the crypto money laundering landscape. With the shutdown of the Sinbad mixer, cybercrime groups like the Lazarus Group had to find alternative channels for illicit fund flows. YoMix, a Bitcoin-based mixer, has seen increased usage by these sophisticated players.
Decrease in Crypto Money Laundering Volume
Chainalysis’ investigation into the crypto laundering system revealed a decrease in the total amount of dirty funds transferred through cryptocurrencies. In 2023, illicit addresses sent $22.2 billion worth of cryptocurrency to various services, down from $31.5 billion in 2022. This decrease is attributed to a general decline in crypto transaction volumes, suggesting a potential squeeze on crypto-enabled crime.
Changing Methods and Services
Despite the overall decrease, crypto criminals have changed their methods and services for laundering proceeds. While decentralized exchanges are not typically targeted for depositing illicit funds, they are increasingly used by FiDefi protocols and other intermediaries. This transition is linked to the transparency of DeFi protocols, which allows tracking but also provides new ways of obfuscating transactions.
Rise of Cross-Chain Bridges
In 2023, there was a rising demand for cross-chain bridges among crypto criminals dealing with stolen funds. These bridges enable the transfer of assets from one blockchain to another and have become a preferred tool for money laundering. The usage of illicit addresses with these bridges has more than doubled.
Changing Strategies and Challenges
Crypto villains are diversifying their activities across multiple services and deposit addresses to minimize detection and the impact of regulatory actions. This distribution of activities presents new challenges for law enforcement and compliance, requiring a more sophisticated approach to tracking interconnected crypto transactions.
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