North Korea’s notorious Lazarus Group is suspected of laundering hundreds of millions of dollars in cryptocurrency over the past four years, according to blockchain researcher ZachXBT. The report, published this week, alleges that the state-backed hacking group has funneled roughly $200 million worth of stolen crypto into traditional fiat currency.
The Lazarus Group has been linked to a string of high-profile cyberattacks in recent years, including the 2014 Sony Pictures hack and the WannaCry ransomware attack of 2017. The group is believed to be funded by the North Korean government and tasked with generating revenue for the regime’s nuclear weapons program and other illicit activities.
ZachXBT’s report details a complex laundering scheme that allegedly involved multiple cryptocurrency exchanges and mixers. Mixers are services designed to obfuscate the origin of cryptocurrency transactions by combining funds from various sources before sending them to their final destinations.
According to the report, the Lazarus Group used a combination of hacking techniques to steal cryptocurrency, including phishing attacks and malware deployments. Once stolen, the funds were funneled through a network of cryptocurrency exchanges, often located in countries with lax regulations on digital assets.
The report further alleges that the Lazarus Group employed mixers to anonymize the stolen cryptocurrency before converting it into fiat currency. This process likely involved collaborating with cryptocurrency exchanges that would accept the anonymized funds and convert them into cash.
Experts have expressed concern over the Lazarus Group’s growing sophistication in exploiting vulnerabilities within the cryptocurrency ecosystem. The group’s ability to launder significant sums of stolen crypto highlights the potential for cryptocurrencies to be used for illicit financing.
Law enforcement agencies and regulatory bodies are increasingly focusing on combating cryptocurrency-related crime. Measures such as stricter know-your-customer (KYC) regulations on cryptocurrency exchanges and enhanced collaboration between international law enforcement agencies are seen as crucial steps to curb the misuse of cryptocurrencies for criminal activities.
The Lazarus Group’s alleged laundering scheme underscores the need for continued vigilance in the cryptocurrency space. As the adoption of digital assets continues to grow, so too does the risk of criminal exploitation.
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This article first appeared on The WIRE and is brought to you by Hyphen Digital Network
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