Originally published on: October 23, 2024
A China-based over-the-counter (OTC) trader has been accused of laundering more than $17 million in stolen cryptocurrency for the notorious North Korean Lazarus Group, known for some of the largest cryptocurrency hacks.
According to popular onchain analyst ZachXBT, Chinese OTC trader Yicong Wang has been converting stolen cryptocurrencies into cash for the Lazarus Group through bank transfers since 2022.
Discovered by one of ZachXBT’s followers who had his account frozen after a transaction with Wang, the trader has been linked to over 25 Lazarus Group hacks, consolidating funds worth millions through wallet “0x501” before Tether froze $374,000 in November 2023.
The Lazarus Group, connected to the North Korean government, is infamous for major cryptocurrency hacks, including the $600-million Roninbridge exploit.
Recently, the FBI warned about the Lazarus Group using social engineering schemes to target workers at decentralized finance (DeFi) and cryptocurrency companies, with a potential eye on ETFs.
According to Michael Pearl from Cyvers, the US spot Bitcoin ETFs could be at risk of Lazarus Group attacks, given the large potential rewards for hackers.
There are concerns that the Lazarus Group may be turning its attention to the Cosmos ecosystem, possibly involving North Korean developers in the Liquid Staking Module (LSM).
With over $3 billion stolen in crypto since 2009, the Lazarus Group remains one of the most notorious hacking groups in the cryptocurrency space.
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