The blockchain researcher ZachXBT claimed that notorious money laundering groups and small OTC brokers are helping major players, such as the infamous Lazarus Group from North Korea, to transfer stolen funds. He specifically pointed out how these OTC brokers have been actively involved in moving funds from major cyberattacks involving DMM Bitcoin, Bybit, and WazirX.
ZachXBT estimates that the Black U cryptocurrency market on the Tron network is valued between $5 billion and $10 billion, with a significant portion unaccounted for. Meanwhile, the blockchain researcher criticizes certain DeFi protocols for profiting passively from stolen funds, as more than 50% of their activity is reportedly from illicit sources.
According to ZachXBT, influencers have a free pass to promote cryptocurrency scams without facing repercussions. Legal systems are also lagging, and courts are increasingly siding with those exploiting smart contracts due to outdated laws, he added.
The founder of Tron, Justin Sun, is planning a major move: taking his company public in the U.S. market through a reverse merger with SRM Entertainment. Despite the recent popularity of cryptocurrency IPOs, Sun is opting for a merger with a SPAC, a quicker route to going public, instead of traditional IPOs.
However, if regulators detect any unusual activity on the platform, the merger plans could be impacted. Following this announcement, the native cryptocurrency TRX was affected amidst the widespread market correction. The price of TRX has dropped more than 5% and is currently trading at $0.2739, with a daily trading volume that has plummeted over 50%, down to $727 million.
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