North Korean Hackers Accused of Laundering $200 Million in Stolen Cryptocurrency from 2020 to 2023

North Korean Lazarus Group’s $200 Million Crypto Laundering Scheme

The North Korean Lazarus Group has been implicated in laundering $200 million worth of cryptocurrency into fiat currency between August 2020 and October 2023. The investigative report by crypto sleuth ZachXBT sheds light on the sophisticated operation.

Modus Operandi of the Lazarus Group

• Utilized over 25 exploits across various blockchains
• Traced illicitly gained funds through mixers, peer-to-peer marketplaces, and centralized exchanges
• Removed funds from the crypto ecosystem

The group, notorious since 2009, reportedly orchestrated over 25 crypto hacks, amassing over $3 billion in stolen crypto assets leading up to 2023. The impact of these attacks on individuals within the crypto space continues to grow.

Laundering Techniques

The stolen digital assets were laundered using a combination of crypto mixing services and peer-to-peer (P2P) marketplaces. Notably, usernames like “EasyGoatfish351” and “FairJunco470” were identified in the laundering process.

Analysis reveals that the hacked funds were primarily converted into the USDT stablecoin before being exchanged for fiat currencies. The Lazarus Group historically relied on over-the-counter traders in China for converting cryptocurrency into fiat.

Blacklisting and Losses

• Tether blacklisted over $374,000 of stolen funds associated with the group
• Three out of four stablecoin issuers blacklisted an additional $3.4 million linked to Lazarus

Data from the United Nations Security Council (UNSC) and DeFiLlama indicates that North Korea was involved in crypto heists totaling $2.4 billion since 2020, with compromised private keys being a significant factor.

Future Trends and Security

Despite a decline in overall crypto heist amounts in recent years, experts warn of potential surges in hacking activities, especially with the growth of the decentralized finance (DeFi) sector and changing market conditions.