🕵️♂️ Crypto Laundering Surge: Lazarus Group Exploits OTC Brokers and Lax Oversight 💸
Crypto investigator ZachXBT has uncovered a surge in illicit crypto laundering, with North Korea’s Lazarus Group exploiting small OTC brokers and weak enforcement by crypto exchanges. He estimates the Black U market on Tron holds $5–$10 billion in largely untraced funds. 🕳️💰
Despite the known criminal activity, many exchanges sit idle, collecting fees while over 50% of their traffic stems from stolen funds. ZachXBT blames the rising abuse on political figures launching memecoins and dropped legal cases that emboldened bad actors. ⚖️🚨
Historic laundering cases include:
The 2016 Bitfinex hack (120K BTC, now worth $4.5B) 🏴☠️
The Hydra darknet market, which processed over $5B in illegal transactions 🧪🔍
Sanctioned Chinese nationals who laundered $100M tied to Lazarus Group 🔄🇨🇳
Lazarus is seen as a top actor in digital asset laundering, using mixers, P2P platforms, and low-AML jurisdictions. In a recent attack, they hacked a ByBit supplier, laundering $160M in just two days — a record-breaking pace that alarmed experts. ⚡📉
On June 5, the U.S. DOJ filed a civil forfeiture complaint targeting $7.7M in crypto and NFTs tied to North Korean IT operatives using false identities to infiltrate tech companies and route payments to sanctioned DPRK wallets. 🧑💻🧾
Officials warn that North Korea's regime continues weaponizing cybercrime to fund its operations, while crypto firms' inaction contributes to the growing threat. 🌐🔐