Cybercriminals identified with the Lazarus Group have used a Cambodian online marketplace to steal and solicit more than $35 million.
Blockchain investigator ZachXBT said this is the second major hack after the $308 million heist from DMM Bitcoin in May, while Elliptic, a blockchain forensics company, said the funds were transferred to Huione Guarantee, which has connections with Cambodia’s ruling Hun family.
Lazarus Group Launders $35M via Huione
ZachXBT pointed out that the stolen Bitcoin was first mixed at the privacy exchange service. Then, it was withdrawn and sent to Ethereum or Avalanche through THORChain.
Last but not least, the amount was converted to USDT and then transferred to Tron and Huione. Elliptic observed that Huione Guarantee has facilitated $11 billion in cryptocurrency from different criminal activities.
The defendants are said to have provided services of a depositary and an escrow agent for the transactions performed through Telegram messenger. It mainly employs the USDT stablecoin of Tether and is most favored by the fraudsters.
Tether Blocks $28M Transfer to Huione
Tether moved on 12th July to prevent the transfer of $28. Huione would have had to transfer 2 million to the fund. They blacklisted the Tron wallet address “TNVaK. … s4Ug8,” which had moved $14 million from the DMM Bitcoin hack.
ZachXBT had earlier revealed that 538 wallet addresses were related to the hack. Elliptic said that the Huione Guarantee is one of Southeast Asia’s most important bases for scam activities.
It has also been associated with Cambodia’s ruling family, particularly Prime Minister Hun Manet. Police and blockchain specialists are currently tracking the crypto-transactions to hinder Huione’s further work.
Elliptic Links Hack to Huione Guarantee
Japan-based DMM Bitcoin froze $308 million in Bitcoin following a severe security vulnerability. The hackers used the vulnerability to penetrate DMM Bitcoin’s systems and caused the major Bitcoin leak on May 30th.
ZachXBT suggested that the Lazarus Group may have been the hack’s author, citing the similarity in the laundering methods and other aspects. According to Elliptic, this is true, given that the stolen funds are linked to the Huione Guarantee.
Measures are being taken to thwart the business of the Huione Guarantee. The police and blockchain analysts are tracing and identifying the platform’s wallets to track it down. This entails the recent blacklisting of a Tron-based wallet that contained 29. 6 million USDT.
ZachXBT still follows the movement of stolen funds. He has managed to establish many wallets belonging to the DMM Bitcoin hack attack. These are important observations, especially in the fight against crypto-related crimes.
High-Profile Influence Complicates Crypto Security
The laundering of $35 million of cash through the Huione Guarantee proves that the cryptocurrency market is filled with loopholes. The issue is also complicated by high-profile entities and political influence. Current studies are conducted to overcome these challenges and enhance security standards.
From Elliptic’s report, it appears that enhanced observation of crypto transaction patterns is needed. The blockchain forensics company also stressed the need for cooperation between industry companies and the police. This is necessary because hacking groups such as Lazarus use complex strategies to perpetrate their activities.
