The infamous North Korean hacking group, Lazarus, has been busy lining its pockets with stolen cryptocurrency. According to a recent report by on-chain researcher ZachXBT, Lazarus laundered over $200 million worth of stolen crypto between 2020 and 2023. This staggering sum represents just a portion of their total haul – ZachXBT estimates they stole over $3 billion in crypto assets in the six years leading up to 2023.
A Complex Web of Money Laundering
Lazarus isn’t your average group of cybercriminals. Their laundering tactics are as sophisticated as their hacking skills. ZachXBT’s investigation revealed the group used a combination of crypto mixing services and peer-to-peer (P2P) marketplaces like Paxful and Noones to convert stolen crypto into cash. These platforms allow users to trade directly with each other, making it harder to track the movement of funds.
Unmasking “EasyGoatfish351” and “FairJunco470”
The report identifies two usernames, “EasyGoatfish351” and “FairJunco470,” linked to Lazarus’ P2P laundering activities. These accounts, according to ZachXBT, show trading volumes and deposits suspiciously aligned with the stolen funds. The analysis suggests these stolen crypto assets were first converted into Tether (USDT), a stablecoin pegged to the US dollar, before being cashed out.
Fortunately, Lazarus’ activities haven’t gone unnoticed. Tether blacklisted over $374,000 worth of stolen funds in November 2023. Additionally, ZachXBT reports that three other stablecoin issuers have blacklisted an additional $3.4 million linked to Lazarus-associated addresses.
Despite these efforts, Lazarus remains a significant threat to the cryptocurrency industry. They were responsible for a staggering 17% of all stolen crypto in 2023, amounting to over $309 million. Their recent use of LinkedIn for targeted malware attacks further demonstrates their evolving tactics.
Also Read: Io.net Recovers from Cyberattack, Strengthens Security for Decentralized Network
The Takeaway: Vigilance is Key
The Lazarus Group’s laundering operation highlights the vulnerabilities in the cryptocurrency ecosystem. While some measures are being taken to combat crypto-related crime, more needs to be done. Cryptocurrency exchanges, P2P platforms, and stablecoin issuers all have a role to play in identifying and stopping illicit activities. With increased vigilance and collaboration, the crypto industry can make it more difficult for Lazarus and other cybercriminals to steal and launder digital assets.
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