ZachXBT Suspects Lazarus Group in $305M DMM Bitcoin Hack

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As a researcher with experience in investigating cryptocurrency hacks and money laundering activities, I find ZachXBT’s recent findings on the DMM Bitcoin hack highly concerning. The similarities between the way the stolen funds were laundered and the known methods of the Lazarus Group, which is believed to have ties to North Korea, are alarming.

Expert: ZachXBT has shared his suspicion that the recent $305 million heist from DMM Bitcoin, a Japanese cryptocurrency exchange, could be the handiwork of the Lazarus Group, a notorious cybercrime organization believed to have links to North Korea. The pattern in which the stolen funds have been transferred echoes Lazarus’ typical modus operandi.

An on-chain detective made a post on Twitter revealing that over $35 million of stolen funds were transferred to an online marketplace named Huione Guarantee in July. This discovery piqued Tether’s interest, leading them to freeze a Tron wallet containing approximately 29.6 million USDT. Notably, this wallet is linked to Huione and had received around $14 million from the DMM Bitcoin heist within three days.

Approximately one quarter of the $305 million stolen during the DMM Bitcoin hack in July 2024, which currently stands at over $35 million, has been traced and moved to Huione Guarantee, an online marketplace. There is suspicion that Lazarus Group, a cybercrime organization known for its sophisticated methods, may be responsible for the theft based on similarities in laundering techniques and off-chain indicators.

— ZachXBT (@zachxbt) July 14, 2024

Hackers employed a sophisticated technique to conceal the ill-gotten Bitcoins. They blended the funds by transferring them through various blockchain networks and converted them into alternate digital currencies. This maneuver bears striking resemblance to past activities of the Lazarus Group.

Based on shared laundering methods and off-chain signals, there’s a strong suspicion that Lazarus Group is responsible for the hack. (ZachXBT’s tweet paraphrased)

Hackers converted the stolen Bitcoins into USDT despite Tether’s ability to prevent such transactions. According to ZachXBT, their reason for doing so was that these small over-the-counter platforms only deal in USDT when facilitating asset sales.

This occurrence serves as evidence of Huione Guarantee’s growing reputation among hackers as a preferred method for transferring cryptocurrencies. According to Elliptic Research, a respected industry analyst, at least $11 billion in crypto transactions have passed through Huione over the last three years, with a significant portion linked to illicit activities.

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2024-07-15 01:24