Blockchain Investigators Uncover Individual Linked to Cryptocurrency Laundering Scheme
Summary:
Blockchain analytics investigators from Match Systems have linked an individual to a cryptocurrency laundering scheme involving the offloading stolen tokens from recent significant exchange breaches. The person, who operates from an address carrying over $6 million in cryptocurrencies, utilizes a Telegram bot to offer these stolen tokens at a discounted price. Possible ties to summer 2023 breaches by the Lazarus Group were noted in spite of differing attack methods. This year, an estimated $47 million in cryptocurrency has been stolen by the group.
Recent investigations conducted by blockchain analysts have led to the discovery of a person associated with a cryptocurrency money laundering scheme, which involves trading stolen tokens from recent exchange breaches at a reduced price. A representative from Match Systems, a blockchain security firm, revealed exclusively to Cointelegraph that several large-scale breaches over the summer of 2023, featuring identical methodologies, point towards an individual who is allegedly offloading stolen digital tokens through peer-to-peer transfers.
An individual using Telegram for selling these illicit assets was located and contacted by investigators, who verified that the person controlled an address holding over $6 million in various cryptocurrencies. The illicit transactions involving stolen tokens were facilitated via a unique Telegram bot that granted a 3% discount on the market price of tokens.
After the initial communication, the individual claimed that the first batch of assets sold out, anticipating restocking in about three weeks. According to the data provided, it's assumed that these possibly come from CoinEx or Stake.
While the Match System experts haven't totally identified the person, the individual's European time zone location was inferred from the timing of conversations and the content of several screenshots received. The said person, believed to be loosely linked to the core team, exhibited unpredictable behavior during interactions and abruptly ended discussions offering excuses such as "My mom is calling me for dinner".
The individual also accepted Bitcoin as a payment option for the cut-price stolen tokens. Earlier, they sold TRON tokens worth $6 million and recently, offered Ether, TRON, and Binance Smart Chain tokens, collectively valued at $50 million.
However, further analysis of the CoinEx and Stake hacks indicates some differences in the methodologies. While the Lazarus Group from North Korea was identified as the hacker of the Stake and CoinEx hacks, the recent ones actively involved money laundering in CIS nations such as Russia and Ukraine. Also, these recent hacks used social engineering as the key attack strategy, unlike the Lazarus Group that exploited “mathematical vulnerabilities”.
Nonetheless, similarities persist - BTC wallets were used as the main reservoir for stolen assets in all the hacks and the Avalanche Bridge and token laundry mixers were employed for money laundering. A review of blockchain data recorded at the end of September 2023 indicates that the North Korean hackers stole $47 million, including $42.5 million in Bitcoin and $1.9 million in Ether in that year.
Published At
10/3/2023 11:47:33 AM
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