Money Laundering Scheme Unveiled in DMM Bitcoin Hack
A hack that targeted Japanese cryptocurrency exchange DMM Bitcoin in May has led to the laundering of over $35 million through the infamous Huioneguarantee marketplace. On-chain investigator ZachXBT, using data from Elliptic, revealed disturbing details about the flow of funds from the hack.
North Korea Lazarus Group Suspicions
With connections to the ruling family in Cambodia, Huioneguarantee has a history of facilitating illegal transactions totaling $11 billion. Investigators now suspect the involvement of the North Korean-backed Lazarus Group in the DMM Bitcoin hack. ZachXBT identified key similarities in money laundering techniques, leading to suspicions of fund transfers to Huione-related wallets.
Transitioning to the means of money laundering, hackers have deployed privacy mixers to obfuscate stolen Bitcoins, subsequently moving funds through various chains like Ethereum and Avalanche. The final steps involved converting funds to USDT and routing them to Tron via SWFT, eventually ending up in Huione-related wallets.
DMM Bitcoin Attack Timeline
The DMM Bitcoin hack on May 29 resulted in the loss of 4,502.9 BTC, prompting the exchange to pause operations. Following the attack, suspicions arose concerning compromised private keys in the exchange’s wallet system. To alleviate user losses, the company raised $320 million through its parent company, DMM.com.
After the incident, Japan’s Financial Services Agency mandated detailed compensation plans from DMM Bitcoin. Within the Japanese crypto industry, attacks on platforms like Liquid, which lost $80 million in August 2021, have heightened security concerns among users.
As investigations progress and more details emerge, the involvement of sophisticated cybercrime groups in such attacks underscores the importance of stringent security measures across all levels of digital asset transactions.
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