Yicong Wang, a China-based OTC trader, is alleged to have laundered tens of millions of dollars of theft cryptocurrency belonging to the infamous Lazarus Group.
Crypto Laundering Accusation
On-chain detective named ZachXBT stated that Wang has been laundering stolen assets on behalf of the Lazarus Group through bank transfers since 2022.
ZachXBT: “Yicong Wang played a central role in converting the Lazarus Group’s stolen cryptocurrencies into cash.”
Wang’s identity was revealed when one of his ZachXBT followers reported that his account was frozen after making a P2P transaction with him. It is alleged that Yicong Wang provided the opportunity to launder stolen cryptocurrencies by converting them into cash. It is alleged that he took the cryptocurrencies obtained through hacking from the Lazarus Group and attempted to launder them through various channels to hide their origin.
Wang reportedly used layered transactions across different platforms and wallets to make it difficult to track down the stolen asset. Additionally, Wang is thought to have made the process more complicated by involving other people and institutions in the scheme.
Lazarus Group Targets Crypto ETFs
The cybercriminal organization called Lazarus Group carried out major attacks on cryptocurrency markets in connection with the North Korean government. The US Treasury Department uses artificial intelligence and data-driven approaches to combat such financial crimes. To date, the Lazarus group, supported by the North Korean state, has been behind many incidents, including the hacking of the Ronin Bridge.
Earlier this month, the US Federal Bureau of Investigation (FBI) announced that Lazarus Group had adopted social engineering scams and targeted employees at decentralized finance and cryptocurrency firms.
These accusations have raised the need to take a closer look at OTC trading platforms and individual traders who manage million-dollar cryptocurrency transactions. Additionally, financial institutions and cryptocurrency exchanges are making it harder for those assisting criminals by implementing Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements to report suspicious activity.
ZachXBT today exposed the person running Lazarus’ OTC business. Using various methods, Wang was taking the proceeds of crime from Lazarus and giving them cash. The truth came to light when the account of a user who traded with Wang was closed.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
