The crypto sector is facing an increasing wave of illicit laundering associated with the Lazarus Group. The effectiveness of crypto exchanges and weak AML policies have led to a rise in such operations.
Increase in illicit operations in crypto
Crypto investigator ZachXBT noted that illicit laundering networks and small OTC brokers have successfully laundered funds stolen in several recent hacks linked to the Lazarus Group. He estimates the Black U market on Tron is no less than $5-$10B and largely unattributed.
Actions of launderers and governmental reactions
The U.S. Department of Justice filed a civil forfeiture complaint targeting over $7.7M in digital assets linked to a global laundering scheme directed by North Korea. The action focused on targeting North Korean IT workers abroad who used falsified identities to gain employment.
Experts' responses to the situation
Experts such as Tom Robinson from Elliptic and Dorit Dor from Check Point argue that North Korea excels at laundering digital assets and continues to expand its capabilities. The rapid pace of laundering following attacks raises alarming concerns about the expansion of criminal financial networks.
The situation regarding money laundering in the crypto sector continues to worsen, calling for stricter oversight from regulators and educational programs within the crypto community.
