Yicong Wang, an over-the-counter (OTC) dealer based in China, faces accusations of laundering approximately $17 million in stolen bitcoin for the notorious Lazarus Group, a cybercrime group associated with North Korea. One of the most well-known bitcoin hacks this organization is known for is the infamous $600 million Ronin Bridge vulnerability.
On-chain analyst ZachXBT claims that, since 2022, Wang has been turning the pilfers into cash via bank transactions. The inquiry into Wang’s conduct emerged after a ZachXBT follower claimed that a peer-to-peer transaction with Wang had frozen their account.
6/ $17M from 25+ Lazarus Group hacks consolidated to 0x5018cf5f48a09c46b4833890cc2cf0df2533d16a where 374K USDT was blacklisted by Tether in Nov 2023
— ZachXBT (@zachxbt) October 23, 2024
After the blacklist the remaining funds were deposited to Tornado. Within days after the deposits 13 X 100 ETH was withdrawn and… https://t.co/k6gSrhcMOD pic.twitter.com/23d0ydAj5V
Linked to Wang, one wallet under the name “0x501” has handled approximately $17 million linked to more than 25 hacks linked to the Lazarus Group. Tether frozen $374,000 in USDt kept by this wallet in November 2023, sparking questions about Wang’s degree of involvement in laundering operations.
Recently, the Lazarus Group shifted its tactics and began utilizing social engineering techniques to target employees at distributed finance (DeFi) companies and cryptocurrency exchange-traded funds (ETFs), thereby compromising bitcoin businesses. The FBI issued a new warning stressing that North Korean hackers have been carrying out sophisticated plans to pilfer money from various companies.
Wang’s case has raised awareness of the possible abuse of OTC trading platforms, which, although giving freedom and anonymity, may also support illegal activity. To hide the sources of the pilfers, his claimed laundering methods involved intricate, layered transactions on several platforms.
These grave claims highlight the necessity of more regulatory control of OTC trading in order to fight financial crime and money laundering. The ongoing operations of the Lazarus Group serve as a sobering reminder of the dangers threatening the bitcoin sector and the necessity for robust security mechanisms.
