Lazarus Group May Be Behind the $305M Exploit of Japanese Crypto Exchange DMM Bitcoin

On-chain investigator ZachXBT revealed that similarities in laundering the stolen funds suggest that the state-sponsored group may be responsible.

Japanese crypto exchange DMM Bitcoin was hacked for $305 million in September, and on-chain investigator ZachXBT has revealed that the state-sponsored Lazarus Group might be responsible.

Similarities in laundering techniques suggest the group may have been involved in the DMM Bitcoin hack.

The stolen funds were moved to online marketplace Huione Guarantee, which has been accused of facilitating billions in illicit crypto-related crimes.

On-chain investigator ZachXBT has suggested that the notorious Lazarus Group may be responsible for the recent $305 million hack of Japanese crypto exchange DMM Bitcoin.

According to ZachXBT, there are similarities in the way the stolen funds were laundered that suggest the state-sponsored group may have been involved. The hackers moved over $35 million of the stolen funds to Huione Guarantee in July, which has attracted attention from stablecoin issuer Tether.

As a result, a Tron-based wallet containing 29.6 million USDT was blacklisted by Tether. This wallet is connected to Huione and is believed to have received around $14 million from the DMM Bitcoin hack in just three days.

The connection to the Lazarus Group is drawn from the laundering pattern, which is a technique commonly used by the group. The hackers also swapped BTC for USDT, which seems odd given how Tether could blacklist USDT.

However, according to ZachXBT, they have no choice because they are cashing out the stolen assets through small OTCs that only accept USDT.

The revelation further highlights the growing role of Huione as a platform for bad actors looking to move crypto. According to a recent report by blockchain analytics firm Elliptics Research, the platform is part of the Cambodian Huioine Group and is mainly used by scam operators in Southeast Asia.

Through its investigations, Elliptic discovered that the transaction volume for crypto wallets linked to the platform has been at least $11 billion over the last three years. Merchants on the platform provide various services, including money laundering, malicious technology and software development, and other scam-enabling services.

Although not all transactions on the platform are fraud-related, Elliptic analysis shows that most transactions are connected to illicit activities, and USDT is the preferred crypto among users. In 2024 alone, the transaction volume is already over $3 billion USDT, which is a modest estimate.

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