Lazarus Group’s $1.2M Bitcoin Transaction: Covert Move From Coin Mixer to Holding Wallet Raises Concern

The infamous Lazarus Group, a North Korean hacking entity, has executed its biggest transaction in the past month with the Lazarus Group’s $1.2M Bitcoin transaction. The group transferred approximately $1.2 million worth of Bitcoin (BTC) from a coin mixer to a holding wallet, catching the attention of cybersecurity experts and blockchain analysts.

Related: CoinEx Faces Massive Hack That Millions in Digital Assets Stolen in 2023

Unveiling Lazarus Group’s $1.2M Bitcoin Transaction

Reports from blockchain analysis firm Arkham reveal details of the Lazarus Group’s $1.2 million Bitcoin transaction. The group’s wallet received 27.371 BTC in two transactions, followed by a subsequent transfer of 3.34 BTC to another previously associated wallet. The identity of the coin mixer involved in these transactions remains undisclosed, underscoring the challenges of tracing cryptocurrency ownership and fund flow.

gm

The Lazarus Group just made its biggest transactions in over a month, withdrawing $1M in BTC from what appears to be a mixing service this morning, then sending $150K of that to an inactive address they’ve sent to before.

Track Lazarus on Arkham:https://t.co/C4FFFLUkL5 pic.twitter.com/quYYF3h7Dj

— Arkham (@ArkhamIntel) January 8, 2024

This move aligns with the Lazarus Group’s extensive history of sophisticated cyber thefts, particularly within cryptocurrency. The U.S. Treasury Department has previously linked them to a $600 million cryptocurrency heist from the Ronin bridge connected to Axie Infinity, a popular online game.

Read Next: Tether’s New Security Policy Sees 41 Crypto Wallets Frozen

Wealth Accumulation Through Illicit Means

Arkham’s tags estimate the Lazarus Group’s combined wallet holdings to be around $79 million, comprising approximately $73 million in BTC and $3.4 million in Ethereum (ETH). This accumulation through illicit means highlights the group’s persistent and evolving tactics in the cryptocurrency landscape.

Furthermore, a report from TRM Labs reveals that North Korea-affiliated hackers, including the Lazarus Group, accounted for a third of all cryptocurrency exploits and thefts in 2023, netting them approximately $600 million.

Escalating Focus on Cryptocurrency

A November 2023 report by Recorded Future’s Insikt Group shows an escalating focus by North Korea on the cryptocurrency industry, estimating a staggering $3 billion in digital asset theft. This activity, originating in 2017 within the South Korean market, has since expanded globally.

Lazarus Group’s $1.2M Bitcoin transaction aligns with the report’s findings. In 2022, North Korean threat actors were accused of stealing $1.7 billion in cryptocurrency, equivalent to 5% of the country’s economy or 45% of its military budget. Laundered through methods akin to traditional cybercriminal groups, these stolen funds serve as a crucial revenue source for the Korean government, enabling it to sustain operations despite facing international sanctions.

The firm highlights the constant adaptation of money laundering methods by the Democratic People’s Republic of Korea (DPRK) to evade international law enforcement pressure.

Also Read: CoinEx Faces Massive Hack That Millions in Digital Assets Stolen in 2023

Hacking Techniques and Future Threats

Research findings indicate that the Lazarus Group’s $1.2M Bitcoin transaction is part of a broader pattern where the group typically compromises users’ private keys or seed phrases. Subsequently, they transfer the funds to wallets controlled by the DPRK. These ill-gotten assets are then exchanged for other cryptocurrencies. Despite advancements in cybersecurity and international collaboration, TRM Labs predicts further disruptions in 2024 from one of the world’s most prolific cyber-thieves.

Analysing Operational Methods

The Lazarus Group’s operational methods have become a focal point for cybersecurity firms. Taylor Monahan, a developer for Metamask, notes that the recent Orbit attack, resulting in a $81 million loss, bears similarities to previous Lazarus Group operations. These patterns offer crucial insights into their strategies, potentially aiding the development of more effective defence mechanisms against future attacks.

Recorded Future attributes over $3 billion worth of cryptocurrency hacks and exploits to the Lazarus Group over the past three years. Their sustained execution of high-profile cyber thefts underscores the advanced nature of their capabilities and the formidable challenges faced in combating such threats.

Final Words

The recent Lazarus Group’s $1.2 million Bitcoin transaction is a stark reminder of the persistent and evolving threats within the cryptocurrency landscape. As cybersecurity measures advance, so do the tactics of sophisticated threat actors, necessitating continuous vigilance and innovation in defence strategies. The cryptocurrency community must remain proactive in adapting to these evolving challenges. 

Visit https://player.me/category/news/crypto/ for more crypto news on player.me, or follow us on Twitter to share your thoughts.