Hackers linked to the $308 million cryptocurrency exchange heist at DMM Bitcoin in May have reportedly laundered more than $35 million through an online marketplace in Cambodia this month, according to blockchain investigator ZachXBT. The funds were transferred to Huione Guarantee, a Cambodian entity allegedly associated with the ruling Hun family, as reported by blockchain forensics firm Elliptic on July 10.
1/4 So far in July 2024 more than $35M from the $305M DMM Bitcoin hack has been laundered to the online marketplace Huione Guarantee
It is suspected that Lazarus Group is behind the hack due to similarities in laundering techniques and off chain indicators. pic.twitter.com/g1ndlttBll
— ZachXBT (@zachxbt) July 14, 2024
Elliptic reports that $11 billion in cryptocurrency has been processed by the marketplace, originating from hacks, pig butchering scams, and other illicit activities.
ZachXBT suggests that the Lazarus Group might be behind the hack, pointing to similarities in laundering techniques and other off-chain indicators.
On-chain analysts noted that the stolen Bitcoin was laundered through privacy mixers, then moved to Ethereum or Avalanche using the THORChain cross-chain liquidity protocol.
They further explained that the funds were converted to USDT and transferred to Tron before attempted transfer to Huione. Tether intervened by blacklisting the Tron wallet address “TNVaK…s4Ug8” on July 12, preventing a transfer of $28.2 million. This address had previously moved approximately $14 million from the DMM Bitcoin hack over three days, as highlighted by ZachXBT.
ZachXBT has published a list of 538 wallet addresses connected to the Lazarus Group, Huione, and other entities involved in the DMM Bitcoin hack.
DMM Bitcoin, based in Japan, lost $308 million in Bitcoin due to a critical security flaw that allowed unauthorized access to its servers, leading to a substantial Bitcoin leak on May 30.
Elliptic asserts that Huione Guarantee has emerged as a significant hub for fraudulent activities in Southeast Asia. The company reportedly operates as a deposit and escrow service for peer-to-peer transactions on Telegram, primarily using Tether’s USDT stablecoin, which attracts scammers and money launderers.
Additionally, the blockchain analysis firm alleges that Huione Guarantee has connections to Cambodia’s ruling family, including Prime Minister Hun Manet.
In response to these findings, law enforcement and blockchain analysts have initiated efforts to disrupt Huione’s operations by closely monitoring cryptocurrency transactions and identifying wallets associated with the platform.
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