The Lazarus Group hackers, who stole $1.5 billion, attempted to use the PumpFun platform on the Solana blockchain to launder these funds.
Details of Lazarus Group's Attack
According to crypto analyst Atlas, the hackers sent 60 SOL to an anonymous wallet and created a memecoin called QinShihuang (#500000) to mask their activities.
Laundering Scheme via PumpFun
The hackers manipulated trading and used wash trading to generate over $42 million in artificial volume, making it difficult to trace the stolen assets. They attracted real traders to the memecoin, combining legitimate transactions with their dirty money. "The hackers created hype around their token, luring in traders looking for quick profits," Atlas reported.
Bybit's Reaction and Consequences
The incident became known after blockchain investigator Zachxbt exposed the laundering linked to the PumpFun exploit. Bybit reassured its users that all funds remain backed 1:1 and launched the site LazarusBounty.com to track the group's actions. "We have assigned a team to dedicate to maintaining and updating this website, and we will not stop until Lazarus or bad actors are eliminated," said Bybit’s CEO Ben Zhou.
The situation highlights the existing vulnerabilities in the DeFi space. Platforms need to update their monitoring tools to detect suspicious transactions and prevent fund theft.
