Gairika Mitra
Using a network of aliases and operating in the shadowy world of over-the-counter cryptocurrency trading, a Chinese individual has allegedly facilitated the laundering of tens of millions of dollars for North Korea’s notorious Lazarus Group, allowing the hackers to convert stolen digital currency into untraceable cash.
Yicong Wang, a Chinese over-the-counter (OTC) trader known by aliases such as Seawang, Greatdtrader, and BestRhea977, has been implicated in a sophisticated scheme that has enabled the Lazarus Group to convert tens of millions of dollars in stolen cryptocurrency to cash through various hacks since 2022, according to a recent report by on-chain sleuth ZachXBT.
Wang’s operations gained public attention when a follower reported their exchange account had been frozen after completing a peer-to-peer transaction with him. This individual later shared a Tron wallet address linked to Wang, raising concerns about the trader’s activities. Most recently, on August 13, 2024, Wang approached the same follower with a proposal for a larger transaction involving approximately 1.5 million USDT at a rate significantly below the market value.
credit: ZachXBT
A deeper examination of Wang’s blockchain activity reveals alarming connections to numerous illicit funds, particularly involving high-profile hacks linked to the Lazarus Group. Over $17 million from more than 25 Lazarus Group hacks has been consolidated into a specific wallet address, which has since been flagged for suspicious activity. Notably, in November 2023, Tether blacklisted 374,000 USDT from this address.
Following this blacklist, Wang allegedly funneled the remaining funds through a privacy protocol, Tornado Cash. Shortly after, he withdrew substantial amounts of Ethereum, further complicating the tracing of these funds. In December 2023, Wang transferred $45,000 bridged from Ethereum to Tron, which was linked to multiple addresses associated with his trading activities.
Wang’s Evolving Tactics: Facilitating Lazarus Group’s Crypto Laundering Operations
Among the many hacks attributed to the Lazarus Group, the attack on Alex Labs stands out, with an estimated loss of $4.5 million in May 2024. The stolen funds continued to flow through Wang’s networks, including deposits of 470 ETH to a privacy protocol in mid-June and subsequent withdrawals matching these amounts. This pattern of behavior appears to be a deliberate strategy to obfuscate the origins of the funds, making it increasingly challenging for authorities to trace the illicit transactions.
In July 2024, the Irys co-founder fell victim to a phishing attack orchestrated by the Lazarus Group, resulting in a loss of approximately $1.3 million. Shortly after this theft, additional funds were funneled into the same privacy protocols used by Wang, reinforcing the connection between his trading activities and the group’s ongoing operations. On August 13, 2024, funds were further bridged to a Tron address directly associated with Wang, indicating that he continues to facilitate the laundering of stolen cryptocurrency.
Despite being banned from trading platforms like Paxful and Noones for laundering activities, Wang has adapted by conducting his business offsite, evading regulatory scrutiny while remaining active in illicit transactions. As blockchain analysis continues to expose his dealings, it raises serious questions about accountability in the rapidly evolving world of cryptocurrency.
ZacjXBT said despite being banned from Paxful and Noones on multiple accounts (Seawang/Greatdtrader/BestRhea977) for laundering funds Wang has since moved to conduct business offsite.
Read More
- Automatic Bot Hacks Token, Profits $24,000 in 12 Secs
- Crypto Sleuth Exposes Circle’s Hypocrisy in Lazarus Group Fund Freeze
- US Is Bent On Seizing Back $2.67M in Crypto Stolen by Lazarus Group
Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
