DMM Bitcoin Exchange Hacked: Funds Laundered Through Huione Collateral Market
Following the cyber attack on the Japanese cryptocurrency exchange DMM Bitcoin in May, the perpetrators have now started laundering the stolen funds, amounting to approximately $305 million in crypto assets. On-chain investigator ZachXBT, using data from blockchain forensics company Elliptic, has revealed that over $35 million has been laundered through the infamous Huioneguarantee.
Link to North Korea Lazarus Group
The Huione Collateral Market, a Cambodia-based platform known for providing merchants with money laundering services, has facilitated illegal transactions amounting to at least $11 billion. ZachXBT suspects a connection between the North Korean-backed “Lazarus Group” and the DMM Bitcoin hack, suggesting that some of the stolen funds were transferred to Huione-related wallets.
Similarities in money laundering techniques and off-chain indicators have led investigators to believe that the Lazarus Group may be involved in the laundering process. The hackers have been utilizing privacy mixers to obscure the origin of the stolen Bitcoins, eventually converting them into USDT and transferring them to Tron wallets via SWFT.
History of DMM Bitcoin Hacking
On May 29, DMM Bitcoin experienced an unauthorized outflow of 4,502.9 BTC, prompting the exchange to halt operations. The breach was attributed to an attack on the exchange’s servers, potentially compromising the wallet’s private keys. DMM Bitcoin committed to compensating affected users by raising funds through its parent company, DMM.com, securing $320 million and collaborating with Japan’s Financial Services Agency for a compensation plan.
In addition to DMM Bitcoin, the broader Japanese cryptocurrency industry has witnessed multiple cyberattacks, including the August 2021 incident where Liquid, a leading platform, lost $80 million in cryptocurrency.
The efforts to identify and prevent the laundering of the stolen funds from the DMM Bitcoin hack continue, shedding light on the sophisticated tactics employed by cybercriminals in the cryptocurrency realm.
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