TL;DR
- ZachXBT accuses Yicong Wang of laundering millions in crypto assets stolen by the Lazarus group.
- Wang, a Chinese OTC trader, has been helping convert stolen assets into cash since 2022.
- The Lazarus group has stolen hundreds of millions in cryptocurrency through various hacks.
Renowned cryptocurrency researcher ZachXBT has exposed Chinese over-the-counter (OTC) trader Yicong Wang, accusing him of helping North Korean hacking group Lazarus launder tens of millions of dollars worth of stolen crypto assets.
Since 2022, Wang has reportedly used various techniques to facilitate the conversion of these illicit funds into cash, acting as a crucial cog in the money laundering network of this notorious group.
1/ Meet Yicong Wang (王逸聪), a Chinese OTC trader who has helped Lazarus Group convert tens of millions of stolen crypto to cash from various hacks via bank transfers since 2022. pic.twitter.com/ARcwC7r3Xr
— ZachXBT (@zachxbt) October 23, 2024
ZachXBT, who has gained fame for uncovering numerous fraud cases in the crypto world, explained on his Twitter account how a follower contacted him after his exchange account was frozen after making a P2P (peer-to-peer) transaction with Wang.
The platform notified the anonymous user that he violated the terms of service by laundering stolen funds linked to the Lazarus group. This information prompted ZachXBT to dig deeper into the investigation, and before long, it revealed alarming details about Wang’s operations, such as the use of multiple pseudonyms such as Seawang and Greatdtrader.
According to the information obtained, which was published on social media by ZachXBT himself, Wang has been involved in transactions of large amounts of cryptocurrencies at rates much lower than those of the market, a characteristic sign of suspicious operations.
In particular, movements of millions of USDT were identified , highlighting one case in August 2024, where Wang offered to exchange 1.5 million USDT into Chinese yuan at a rate well below market value, raising alarm bells about his intentions.
The scope of the Lazarus Group and Wang’s involvement
The Lazarus Group, a North Korean hacker organization, has been linked to several massive cryptocurrency thefts, being responsible for the appropriation of hundreds of millions of dollars.
In October 2024, US authorities accused the group of stealing a total of $879 million in cryptocurrency.
These funds, after being stolen, are laundered through various international operations, and Wang has been identified as a key player in achieving this conversion into cash through bank transfers.
ZachXBT provided further details on how Wang has carried out these operations, using Tron wallet addresses that have been connected to multiple high-profile hacks, including those on platforms like EasyFi and Bondly.
Through these networks, the trader has consolidated illicit funds and distributed them using social engineering methods and P2P transactions, maintaining a relatively low profile so far.
Although several of Wang’s accounts have been blocked on various platforms, ZachXBT claims to remain active, adapting its methods to continue assisting the Lazarus Group in its money laundering operations.
Despite efforts to track these funds and stop their activities, Wang continues to find ways to circumvent restrictions.
