DMM Bitcoin Hackers Laundered Money Through the Infamous Huione Collateral Market
The cyber attackers who breached Japanese cryptocurrency exchange DMM Bitcoin have now started laundering the stolen funds. With a staggering loss of around $305 million in crypto assets due to the hack in May, the perpetrators have been actively moving the funds through various channels.
Suspicion of North Korea Lazarus Involvement
There are strong suspicions that the North Korean-backed group Lazarus may have been involved in the DMM Bitcoin hack. Investigators have identified connections between the hackers and the infamous Huione Collateral Market, known for facilitating illegal transactions worth billions of dollars.
Furthermore, the laundering techniques used by the attackers bear resemblance to those associated with Lazarus, strengthening the case for their involvement. By utilizing privacy mixers and cross-chain protocols like THORChain, the hackers have been able to convert stolen funds into different cryptocurrencies and ultimately transfer them to Huione-related wallets.
Historical Background of DMM Bitcoin Hacking
On May 29, DMM Bitcoin experienced an unauthorized outflow of 4,502.9 BTC, leading to a suspension of its operations. The vulnerability was attributed to a server attack, potentially compromising the exchange’s wallet private keys.
Despite the lack of specific details regarding the attack, DMM Bitcoin pledged to compensate its users by raising funds through its parent company, DMM.com. The exchange managed to secure $320 million in funding and was mandated by Japan’s Financial Services Agency to outline a comprehensive compensation plan.
In light of this incident, the Japanese cryptocurrency sector has faced a series of attacks, including the notable breach at Liquid, which resulted in the loss of significant assets. These incidents highlight the growing threat posed by cybercriminals targeting crypto exchanges in the region.
In conclusion, the DMM Bitcoin hack and subsequent money laundering activities underscore the importance of robust cybersecurity measures within the cryptocurrency industry. As digital assets continue to gain prominence, safeguarding against malicious actors becomes paramount to ensure the integrity and security of the ecosystem.
