Shocking – A new twist has emerged in the aftermath of the massive DMM Bitcoin hack. Crypto investigator ZachXBT uncovered a trail leading $35 million of the stolen funds to an unexpected destination: the Huione Guarantee online marketplace. But here’s the real head-scratcher: the laundering scheme used tactics of the infamous Lazarus Group.
Could this be a sign of their involvement? Read on.
A Systematic Laundering Process
The laundering process was meticulously executed. Initially, the stolen Bitcoin was transferred to a mixing service to obscure its origins. The mixed Bitcoin was then moved to a new address. Subsequently, the funds were converted from Bitcoin to Ethereum or Avalanche using platforms like THORChain, Threshold, or the Avalanche bridge. The laundered Bitcoin was finally exchanged for USDT and sent to Huione.
The hacking and laundering techniques mirror those of the Lazarus Group, a cybercriminal organization linked to North Korea. The similarities in laundering methods and off-chain activities further suggest their involvement.
Tether Takes Action
A significant development occurred over the weekend when Tether identified and blacklisted a wallet containing $29.6 million USDT on the Tron network. This wallet, associated with Huione, had received about $14 million from the DMM Bitcoin heist over three consecutive days. Tether’s action aims to freeze the stolen funds and prevent further laundering.
More on the Huione Guarantee
Huione Guarantee has become a hub for money laundering in Southeast Asia, attracting criminals like the infamous “pig butchering” fraudsters. A recent report by blockchain analytics firm Elliptic stated that Huione merchants have handled $11 billion in transactions.
The report also indicated that Huione Group has connections with the Cambodian government, making it challenging for authorities to shut down the company.
An Urgent Need for Oversight
In December last year, ZachXBT uncovered that tens of millions of yuan from the $31 million Fintoch investment fraud were funneled through Huione. This highlights the persistent use of Huione for illicit activities, underscoring the need for increased regulatory oversight and stringent anti-money laundering controls.
Also Read: Crypto Hacks Weekly Report: DeFi and Celebrities Under Attack!
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