Blockchain investigator ZachXBT has recently revealed the involvement of a Chinese over-the-counter (OTC) trader named Yicong Wang in laundering stolen crypto for the North Korea-affiliated Lazarus Group. This partnership dates back to 2022 and has resulted in the conversion of tens of millions of dollars in crypto from various hacks into cash through bank transfers.
ZachXBT’s investigation uncovered Wang’s ties to several Lazarus Group-related hacks, including those targeting Alex Labs, Irys, and other entities. One of Wang’s associated addresses, “0x501,” consolidated over $17 million in digital assets from more than 25 hacks attributed to Lazarus. Tether also froze $374,000 USDT held in the same wallet in November 2024.
In December 2023, the Lazarus Group transferred $45,000 in stolen digital assets to multiple addresses connected to Wang, and in August 2024, funds stolen from Alex Labs were sent to Tron addresses associated with him. Wang also received commingled funds from the Alex Labs and Irys hacks, as well as 746,000 USDT from an Ethereum address blacklisted by Tether.
Despite being banned from crypto platforms like Paxful and Noones, where he operated under aliases such as Seawang, Greatdtrader, and BestRhea977, Wang continues to conduct business off-platform and is believed to still be laundering funds for the Lazarus Group.
The ongoing partnership between Wang and the Lazarus Group highlights the vulnerabilities in the crypto industry and the sophistication of this North Korea-backed hacking group. Over the past year, the Lazarus Group has been linked to over $500 million in cryptocurrency thefts from various cyberattacks, including breaches of exchanges like DMM, WazirX, Indodax, and BingX.
This case serves as a reminder of the importance of robust security measures in the crypto space to prevent illicit activities and protect users from falling victim to hackers. It also underscores the need for enhanced regulatory oversight to hold individuals like Wang accountable for their involvement in money laundering schemes. As authorities continue to investigate and crack down on such criminal activities, it is essential for users to remain vigilant and exercise caution when engaging in crypto transactions to safeguard their assets and prevent them from being used for nefarious purposes.
