Crypto investigator ZachXBT has shared new information claiming $35m of the $305m stolen in the DMM Bitcoin hack has been laundered through the Huione Guarantee online marketplace in July 2024. Specifically, the laundering scheme is reminiscent of the operations of the Lazarus Group and their typical practices and signs of activity off-chain.

The particulars of the laundering of the money are also very systematic and well-planned. First, the obtained from the hack Bitcoin is transferred to a mixing service in order to hide its traces. The mixed Bitcoin is then cashed out to another new address. Funds are transferred from Bitcoin to Ethereum or Avalanche, using THORChain, threshold, or the Avalanche bridge. The laundered Bitcoin is then exchanged for USDT which is further crossed. Last, the USDT is sent to Huione.

Is the Lazarus group responsible for the DMM hack?

The hacking and laundering techniques share some of the signatures of another cybercriminal organization, the Lazarus group associated with North Korea. Their participation is also confirmed by the similar approaches to the choice of laundering techniques and other off-chain signs marked. 

A major development over the weekend was when Tether identified a wallet to which it would no longer ‘tether’, which had $29. 6 million USDT for Tron network. This wallet was linked with Huione and had got about $14 million from the DMM Bitcoin heist in three consecutive days. The action of Tether exposes attempts to further freeze and thus, stop the circulation of the stolen funds and prevent their washing.

Huione Guarantee has become one of the centres for money fraud in South East Asia. Criminals have also been observed to use it for money laundering, instances being the infamous pig butchering fraudsters. 

In its recent report, a blockchain analytics firm Elliptic said that Huione merchants have done $11 billion in volumes. The report also indicated that Huione Group has connections with the Cambodian government implying it is almost impossible for the authorities to shut the company. 

In December last year, ZachXBT exposed that tens of millions of yuan from the $31 million Fintoch investment fraud were siphoned through Huione. This increases the path of illicit activity thus the need to have increased regulatory oversight and strict anti-money laundering controls.

Also Read: Crypto Hacks Weekly Report: DeFi and Celebrities Under Attack!

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