A Chinese trader has been linked to the laundering of millions of dollars in stolen cryptocurrencies for the North Korea-affiliated hacker group Lazarus Group.
According to blockchain investigator ZachXBT, on October 23, Yicong Wang, a Chinese over-the-counter trader operating under several aliases, facilitated the conversion of substantial amounts of stolen cryptocurrency into cash for the notorious hacker group.
Blockchain data indicates that since 2022, Wang has been involved in laundering cryptocurrency through bank transfers, utilizing aliases such as ‘Seawang’, ‘Greatdtrader’, and ‘BestRhea977’.
OTC Trader Collaborates with Hacker Group
ZachXBT’s investigation into Wang was initiated after a trader reported that their account had been frozen following a peer-to-peer transaction with Wang.
A Tron (TRX) wallet associated with Wang revealed connections to a series of transactions involving illicit funds tied to the $4.5 million hack of Alex Labs. Additionally, on-chain data showed the trader’s wallet address was linked to fund transfers from various hacks, including those connected to Irys co-founder, EasyFi, Bondly, and Maverick.
The Lazarus Group was responsible for the $4.3 million Alex Labs hack in May 2024, along with the $1.3 million attack on Irys co-founder in July 2024. Funds transferred to deposit addresses associated with the hackers were traced back to Wang’s accounts. Wang was instrumental in commingling and bridging these funds to Tron addresses in transactions on August 13, 2024.
ZachXBT also noted that Tether blacklisted an Ethereum address holding 948,000 Ether (ETH) connected to Wang in August 2024.
“Despite being banned from multiple platforms for laundering activities, Yicong Wang has continued operations offsite. Evidence suggests he has actively assisted the Lazarus Group in recent weeks,” ZachXBT stated.
Lazarus Group and Major Crypto Hacks
This latest revelation from ZachXBT underscores persistent efforts to uncover malicious actors within the cryptocurrency sphere, bringing several individuals to law enforcement’s attention. These efforts include initiatives to recover stolen funds from crypto hacks, rug pulls, and ransomware attacks.
The Lazarus Group has been implicated in numerous high-profile cryptocurrency hacks over recent years, including the $625 million exploit of the Ronin blockchain. The U.S. Justice Department and the Federal Bureau of Investigation have named the Pyongyang-linked hacker group as one of the most formidable cybercriminal organizations globally.
Earlier this year, ZachXBT disclosed that the Lazarus Group laundered over $200 million from more than 25 crypto hacks between 2020 and 2023.
