Lazarus Group Suspected to Be Behind $305M DMM Bitcoin Hack as $35M Is Laundered

Investigator ZachXBT noted similarities in the laundering techniques used in this incident, pointing to the group's involvement.

Japanese crypto exchange DMM Bitcoin suffered a $305 million breach earlier this year, and recent developments indicate that North Korea’s state-sponsored hacking group, the Lazarus Group, might be involved in the large-scale theft.

Investigator ZachXBT highlighted similarities in the laundering techniques used in this incident, suggesting the group's involvement.

1/4 So far in July 2024 more than $35M from the $305M DMM Bitcoin hack has been laundered to the online marketplace Huione Guarantee

It is suspected that Lazarus Group is behind the hack due to similarities in laundering techniques and off chain indicators.

pic.twitter.com/g1ndlttBll

— ZachXBT (@zachxbt) July 14, 2024

According to the investigator's findings, a Tron-based wallet, which is part of the laundering chain, received $14 million in Tether (USDT) within a short period. This wallet, out of the total stolen funds, has been blacklisted by Tether, which contains $29.6 million in USDT.

The stolen Bitcoin was reportedly funneled through Huione Guarantee, an online marketplace, in amounts of over $35 million, as revealed by investigator ZachXBT. The stolen funds were laundered through mixers before being bridged to the Avalanche or Ethereum networks using various platforms.

From there, the funds were converted into Tether (USDT) and further processed through the Tron network via SWFT, eventually ending up on Huione Guarantee, a platform known to be used for illicit crypto activities.

Crypto Tracking Platform Reports Major Security Breach

Huione Guarantee, part of the Cambodian Huioine Group, has gained notoriety as a hub for illicit crypto activities in Southeast Asia. According to Elliptic Research, the platform has facilitated suspicious transactions totaling at least $11 billion over the past three years, with 2024 alone seeing transactions surpassing $3 billion in USDT.

This incident underscores the challenges faced in securing digital assets and highlights the need for enhanced regulatory oversight in the crypto industry.