Uncovering the Money Laundering Tactics of the Notorious Lazarus Group: How $200 Million in Hacked Crypto Funds Were Funneled into Fiat Currency
The notorious North Korean hacker organization, Lazarus Group, has once again made headlines in the crypto world, this time for allegedly laundering over $200 million in hacked crypto funds into fiat currency. Thanks to the efforts of pseudonymous on-chain sleuth ZachXBT, the intricate web of transactions has been unraveled.
Lazarus Group has been behind some of the most high-profile crypto-related hacks in recent years, including the $41 million hack on Stake.com and the $622 million exploit of the Ronin gaming network. In total, the group has reportedly stolen over $2 billion in digital assets across various thefts.
ZachXBT’s detailed report analyzed over 25 hacks across multiple blockchains, tracking the movement of funds through various coin mixers and exchanges over a three-year period. The Lazarus Group utilized popular mixers such as Tornado Cash and ChipMixer to obfuscate the origin and destination of the stolen funds.
In addition to using coin mixers, the hacker group also leveraged peer-to-peer exchanges like Noones and Paxful to further obscure the trail of funds. With the assistance of industry giants like Binance and MetaMask, ZachXBT identified several accounts believed to be linked to Lazarus Group, which allegedly received $44 million from the hacks and successfully converted the funds into fiat currency.
These findings align with previous reports that Lazarus Group has used over-the-counter traders to launder money, with one notable example being Wu Huihui, who was accused of facilitating payments for the Democratic People’s Republic of Korea. Huihui was added to the Office of Foreign Assets Control’s Specially Designated Nationals List, highlighting the group’s ties to sanctioned entities.
As the investigation continues, the crypto community remains vigilant against the activities of Lazarus Group and other malicious actors in the space. With the help of dedicated researchers like ZachXBT, efforts to combat cybercrime and protect the integrity of the crypto ecosystem are ongoing.
