Lazarus Group’s Crypto Coup: A Lucrative Play Amidst Controversy

The Lazarus Group’s crypto wallet has recently made headlines after engaging in a profitable cryptocurrency exchange that turned their initial investments into millions. This strengthens the theories on their cybercrimes and illicit activities and further exposes the complexities of the criminal underbelly of finance.

The wallet address in question is said to have profited $2.5 million from selling 40.78 Wrapped Bitcoin (WBTC) for a whopping $3.51 million, according to SpotOnChain data. The proceeds from the sale were later exchanged for 1,847 Ethereum (ETH), but rather than keeping the digits in one place, the wallet distributed them to three different addresses, with the largest share of 1,865 ETH being sent to another wallet, which is also believed to be linked to the Lazarus Group.

In February 2023, the wallet in question purchased WBTC for around 999,900, which meant purchasing 40.78 WBTC for around 24,521 each. The price of WBTC at that time was around $24,521, which proves that the Lazarus Group was not looking to make hasty decisions. The group decided to hold on and only sell when the price was right.

The Reward: Capitalizing on the Exploit of Bitcoin

Their patience proved fruitful when WBTC prices skyrocketed to $83,469, cashing out as profit USD 2.51 million. This is a staggering 251% profit on the investment over a two-year period, demonstrating how even illegal players in the market are able to reap enormous rewards— within the crypto market.

Tax Avoidance Strategies: A System of Distributed Coin Exchanges

While laundering the funds, the Lazarus Group is known for their convoluted and intricate methodologies that acquire and spend such funds. This is especially true in the case of their pursuits after the Bybit exchange hack. Instead of merging stolen assets into a single wallet, they move them with a multitude of transactions to obfuscate and disguise them as multiple different wallets to further obfuscate tracing.

A Hoard Worth a Billion: Lazarus Group’s Wealth in Crypto

Cryptocurrencies attributed to the Lazarus Group still hold a sizable amount of crypto according to Arkham Intelligence. Roughly USD 1.1 billion worth. Such assets contain large amounts of Bitcoin, Ethereum, Tether, and other leading cryptos indicative of their soaring criminal wealth hidden beneath the surface.

Insider Threats: North Korean IT Workers

Google’s Threat Intelligence Group has noted an increase in attempts by North Korean IT workers to breach European technology and cryptocurrency firms. These workers frequently operate as insiders, posing as legitimate staff members while working for state-sponsored cybercrime groups like the Lazarus Group.

A Persistent Threat in the Crypto World

The ruthless Bitcoin trade by Lazarus Group serves as a reminder of the threat of state-sponsored cybercrime in cryptocurrency markets. They employ highly sophisticated laundering tactics, reinforced by an insider operative, and thus pose a great threat. The cryptocurrency ecosystem and enforcement authorities need to remain proactive and devise counter-strategies to these crimes to sustain the digital asset balance.