Crypto hacks and scams have become common, and cryptocurrency platforms must be one step ahead to grasp the situation. In a recent report, Binance and Huobi announced the seizure of $1.4 million worth of crypto funds related to the June 2022 Harmony bridge exploit.
A February 14 report revealed that two crypto exchanges are tracking and blocking the movement of funds in accounts linked to notorious North Korean hackers. More details were revealed by the blockchain analytics company Elliptic did the investigation that lead to the recovery of funds.
Elliptic Aids Recovery of Fraction of Funds From Harmony Exploit
On June 22, 2022, North Korea’s infamous Lazarus crime group compromised Harmony’s Horizon Bridge and stole ~$100 million in crypto assets. according to to report, the attack started at 7:08 am and lasted until 7:26 am, allowing the hackers to withdraw millions of dollars in various tokens through 11 transactions. After the hack, the criminals sent the funds to other wallets on the Uniswap decentralized exchange to exchange them for Ether.
The exploit is taken seriously because the Horizon Bridge facilitates the transfer of tokens between Harmony and the big three networks, Ethereum, Bitcoin, and Binance Chain. Therefore, an ongoing investigation is underway to trace the hackers and recover the funds. US Federal Intelligence Bureau tracked down exploit Harmony to North Korea’s Lazarus Group.
Meanwhile, the stolen funds remained dormant until recently, when the criminals began funneling them through complex transaction chains to several exchanges. Elliptic, one of the companies investigating the matter, got a lead on the stolen funds and sent intel to Binance and Huobi.
Analytics companies informed crypto exchanges about illegal deposits on their platforms, and they froze accounts linked to hackers. According to the report, the frozen account has about $1.4 million worth of crypto tokens.
Lazarus Group Linked to Multiple Crypto-Related Money Laundering
Several North Korean groups have been linked to crypto-related money laundering and wire fraud, prompting countries to ban them. Reports claim that the Lazarus Group used the OFAC-approved Tornado Cash privacy mixer to launder funds after the Harmony theft. Although using the privacy mixer makes it easier to move funds on the exchange, it also helps Eliptic’s investigation because the company can trace funds stolen through the mixer.
In a statement, Elliptic’s CEO, Simone Maini, commented on the development. He said the event shows the industry is taking action to prevent money laundering and stop the cryptocurrency space from becoming a haven for criminal activity.
This recent event is not the first time Huobi has partnered with Binance to tackle the Harmony hack exploit. On January 16, two cryptocurrency exchanges freeze and refund 121 BTC worth $ 2.5 million, at the time, connected to the Harmony attack.
However, the new recovery is only a fraction of the $63.5 million the group has laundered over the weekend. According to on-chain sleuths ZachXBT, the criminal funneled 41,000 ETH through Railgun, an Ethereum-based privacy protocol, before sending it to three exchanges.
Also, the latest An elliptical probe is found that the Lazarus Group laundered around $100 million in BTC through Sinbad. Sinbad’s firm statement is a relaunch of the OFAC-approved privacy mixer Blender.
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