Stolen Bitcoin from $305M DMM Hack Laundered via Cambodian Platform Huione Guarantee

• The cryptocurrency world is in turmoil as over $35 million in stolen funds from the $305 million DMM Bitcoin hack have been laundered through Huione Guarantee, a marketplace run by the Cambodian conglomerate Huione Group.
• Huione Guarantee is notably linked to the Cambodian ruling elite and is known to be a significant hub for illicit financial activities in Southeast Asia.
• Experts point to the notorious Lazarus Group from North Korea as the likely perpetrators behind the hack and subsequent fund laundering.

Discover the details of a major cryptocurrency laundering scandal involving the Huione Guarantee platform, linked to the infamous DMM Bitcoin hack, and the potential involvement of North Korea’s Lazarus Group.

Large-Scale Laundering Through Huione Guarantee Platform

Over the weekend, stablecoin issuer Tether took significant steps by blacklisting a wallet containing 29.6 million USDT on the Tron network. The wallet, according to on-chain detective ZachXBT, received approximately $14 million in stolen funds from the DMM Bitcoin hack within just three days. This action hints at a well-coordinated laundering scheme, potentially orchestrated by North Korea’s Lazarus Group, which has been suspected of similar activities in the past.

The Mechanism Behind the Laundering Operation

The laundering process uncovered by ZachXBT involved a series of intricate steps. Initially, the stolen Bitcoin was deposited into a mixer. Post-mixing, the tokens were withdrawn and subsequently bridged to Ethereum or Avalanche using platforms like THORChain and the Avalanche bridge. The funds were then swapped for USDT and bridged to the Tron network via SWFT. Ultimately, the laundered funds were transferred to Huione Guarantee, cementing the platform’s role as a laundering haven.

Huione Guarantee: A Hub for Illicit Financial Activity

Further investigations by Elliptic, a crypto tracing firm, revealed that Huione Guarantee’s deposit and escrow services are primarily used for peer-to-peer transactions in various cryptocurrencies, especially USDT, over platforms like Telegram. The service’s heavy use by scammers has raised significant concerns, as it facilitates fraudulent operations, including pig butchering scams.

Provision of Scam-Enabling Products

Elliptic’s research also pointed out that Huione Guarantee’s marketplace sells equipment allegedly used for imprisoning and torturing workers within scam operations. Items such as tear gas, electric batons, and electronic shackles are openly advertised on the platform, indicating a deeply entrenched network of criminal activities and human rights abuses.

Conclusion

This emerging scandal surrounding Huione Guarantee and the laundering of DMM Bitcoin hack funds sheds light on the complex and often shadowy world of cryptocurrency-related financial crime. With North Korea’s Lazarus Group suspected to be involved, the convergence of state actors and illicit marketplaces underscores the need for robust regulatory frameworks and enhanced cooperation among international enforcement agencies. As the cryptocurrency landscape continues to evolve, so too must the mechanisms to safeguard against such malicious activities, ensuring a secure and transparent financial environment.