Lazarus Group Connected to $35M Laundering Via Huione Following $305M DMM Bitcoin Breach

A recent development has shed light on the aftermath of the significant DMM Bitcoin hack. Investigator ZachXBT has uncovered a surprising revelation that $35 million of the stolen funds found their way to the Huione Guarantee online marketplace. What makes this discovery even more intriguing is the involvement of tactics associated with the notorious Lazarus Group in the laundering process.

The laundering operation was carried out with precision and detail. Initially, the stolen Bitcoin underwent a process of being transferred to a mixing service to conceal its source. Subsequently, the mixed Bitcoin was shifted to a new address before being converted to Ethereum or Avalanche using platforms such as THORChain, Threshold, or the Avalanche bridge. The laundered Bitcoin was eventually exchanged for USDT and sent to Huione.

The parallels between the hacking and laundering methods employed and those attributed to the Lazarus Group, a cybercriminal entity with ties to North Korea, suggest a potential connection. The similarities extend to the laundering techniques and off-chain activities, further hinting at their possible involvement.

In a significant move over the weekend, Tether took action by identifying and blacklisting a wallet on the Tron network containing $29.6 million USDT. This wallet, linked to Huione, had received approximately $14 million from the DMM Bitcoin heist within a span of three days. Tether’s intervention aims to freeze the stolen funds and impede any further laundering attempts.

Huione Guarantee has emerged as a hotspot for money laundering activities in Southeast Asia, attracting criminal elements like the infamous “pig butchering” fraudsters. A report by blockchain analytics firm Elliptic revealed that transactions worth $11 billion have been processed by merchants on the platform. Additionally, Huione’s connections with the Cambodian government pose challenges for authorities in shutting down the operation.

In a separate revelation from last December, ZachXBT disclosed that tens of millions of yuan from the $31 million Fintoch investment fraud were channeled through Huione. This underscores the persistent exploitation of Huione for illicit purposes, emphasizing the critical need for enhanced regulatory oversight and robust anti-money laundering measures.

The ongoing trend of utilizing Huione for nefarious activities underscores the urgency for increased vigilance and regulatory scrutiny in the crypto space. By remaining vigilant and informed, we can collectively contribute to fostering a safer and more secure crypto ecosystem.