- Lazarus Group, a North Korean cybercrime unit, has amassed significant cryptocurrency holdings.
- The group’s history includes major cyber attacks and heists in the cryptocurrency space.
In the highly volatile landscape of cryptocurrencies, the actions of prominent entities can significantly influence market dynamics. One of those formidable entities, the Lazarus Group, a cyber hacking organization originating from North Korea (DPRK), managed to amass significant stakes.
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Will Lazarus HODL?
The Lazarus Group, which has been sanctioned by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) over the past year, has a history steeped in cryptocurrency-related cyber attacks.
According to data from Dune Analytics, their exploits resulted in the theft of at least a staggering $900 million through various cryptocurrency-related heists.
A particularly notable incident occurred on September 4, coinciding with the Stake hack. On this eventful day, Lazarus Group recorded a fund influx of approximately $40 million, with substantial allocations being channeled into Binance Coin. [BNB]Ethereum [ETH]and Bitcoin [BTC].
North Korea’s cybercrime unit Lazarus Group, which was sanctioned by OFAC last year, is responsible for stealing at least $900 million in crypto-related hacks 🤯 Let’s take a look at the most relevant statistics.
Thanks to our own @0xcarlosg for this @DuneAnalytics dashboard🕵️
✍️/4 pic.twitter.com/stZDyuvTaO
— 21.co (@21co__) September 18, 2023
The Lazarus Group’s rigorous transaction patterns remained remarkably consistent with their modus operandi in previous operations.
Quickly converting their crypto assets into Bitcoin and Ethereum, they are known to send significant amounts of money through mixing services, a fundamental element in their sophisticated money laundering apparatus.
Currently, Lazarus Group’s cryptocurrency portfolio is anchored by three major digital assets:
- BTC: 57% of ownership
- ETH: 24% of ownership
- BNB: 18% of assets
Notably, on August 22, the Federal Bureau of Investigation (FBI) issued a stern warning regarding the movement of approximately 1,580 BTC linked to the group, sounding the alarm for a possible payout attempt regarding this significant amount.
How are the currencies holding up?
While the massive supply of Bitcoin and Ethereum provides a degree of resilience against potential selling pressure, the prospect of Lazarus Group offloading its assets has the potential to significantly tilt market sentiment in a negative direction.
Notably, Bitcoin’s price stands at $26,600 at the time of writing, having been on an upward trajectory in recent days.
This remarkable increase can be attributed, at least in part, to increased interest from cryptocurrency whales. Glassnode’s data showed that addresses holding more than 1 Bitcoin hit a new all-time high.
Nevertheless, it is Binance Coin that is most susceptible to the plausible selling pressure emanating from the Lazarus Group.
Binance, the main cryptocurrency exchange underlying BNB, has struggled with legal entanglements and a series of layoffs, challenges that could potentially cast a shadow on sentiment regarding the token.
Source: Santiment
CoinEx is making progress
Lazarus Group’s propensity to launch cyberattacks on the cryptocurrency ecosystem includes an extensive chronicle of nefarious exploits. Recent data shows the group’s involvement in the CoinEx exchange hack.
Additionally, cybersecurity firm SlowMist pointed to possible ties to the Lazarus Group.
In response to the hack, CoinEx initiated a comprehensive strategy that emphasized the highest security and unwavering transparency. They unequivocally refuted all claims of resumed recording services as false and warned users against dealing with such misleading messages.
CoinEx has been diligent in reassuring users about the absolute security and integrity of their assets. They also stated that they are committed to prioritizing security over the reactivation of recording functionalities.
#CoinExResponseUpdate – CoinEx Teamwork Progress Update on September 18
(Details in discussions)Please note: All claims that CoinEx has resumed withdrawal services are false and scam-related. Please report such messages to us and do not participate in these communications. pic.twitter.com/5pmlZgrGIU
— CoinEx Global (@coinexcom) September 18, 2023
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In addition to the CoinEx incident, Lazarus Group’s criminal record shows a recurring pattern of criminal activity. Prior to their focus on Stake, they orchestrated a $60 million heist targeting crypto payment providers Alphapo and CoinsPaid.
In June, they performed their magnum opus of the year, siphoning a whopping $100 million from yet another wallet provider, Atomic Wallet. Additionally, the Lazarus Group infiltrated an American IT company called JumpCloud, as detailed in a Reuters report.