Key Points
Hackers Launder Stolen Ethereum
The Lazarus Group, a cybercrime organization reportedly backed by the North Korean regime, has been linked to a recent incident involving the laundering of stolen Ethereum.
The group is believed to have exploited the coin-mixing service Tornado Cash to launder approximately $12 million worth of stolen Ethereum within the past 24 hours.
This follows a major heist in November 2023, where the group allegedly stole $100 million in various cryptocurrencies from the HTX crypto exchange and its HECO Bridge.
Elliptic, a blockchain analytics firm, along with other experts, pointed to the Lazarus Group’s involvement based on their modus operandi and the subsequent movement of the stolen funds.
The group is known for its high-profile hacking campaigns.
After the heist, the hackers reportedly converted the stolen tokens into Ethereum through decentralized exchanges.
The illicitly acquired Ethereum funds remained dormant until recently.
On March 13, the hackers began funneling the stolen Ethereum through Tornado Cash.
Tornado Cash is a decentralized, smart contract-based mixer that was sanctioned by the US Treasury in August 2022 for its association with laundering $455 million from Lazarus Group crypto hacks.
However, due to its decentralized nature, Tornado Cash has managed to avoid being shut down like centralized mixers such as Sinbad.io.
Shift in Laundering Methods
When Tornado Cash was sanctioned, the Lazarus Group began using cross-chain bridges and the Bitcoin-based mixer Sinbad.io as alternatives.
However, Sinbad.io was seized by US authorities in November 2023, causing the group to return to using Tornado Cash.
The group has been using Tornado Cash’s decentralized architecture to launder funds at scale and obscure its transaction trail.
According to Elliptic, the group’s return to Tornado Cash is due to the “diminishing availability” of large-scale mixers because of law enforcement operations targeting services like Sinbad.io and Blender.io.
This has left the group with fewer viable alternatives.
The group has taken advantage of Tornado Cash’s continued operation despite sanctions, exploiting the security and decentralized nature of smart contracts on blockchain networks.
At the time of writing, Ethereum is trading at $3,870.
Earlier this week, it reached a two-year high of $4,084, but failed to sustain consolidation above this level.
Consequently, over the past 24 hours, ETH has experienced a 2.5% decline in price.
