Cryptocurrency exchanges Binance and Huobi have frozen approximately $1.4 million worth of cryptocurrencies linked to North Korea, according to blockchain analytics firm Elliptic. The firm noted that the stolen funds, which were inactive until recently, originated from the June 2022 hack of Harmony’s Horizon Bridge.
Binance and Huobi Freeze Cryptocurrencies Linked to North Korea
Blockchain analytics firm Elliptic said on Tuesday that it has collaborated with cryptocurrency exchanges Binance and Huobi “to freeze the proceeds of the Lazarus Group hack.” elliptical wrote:
Cryptocurrency exchanges Binance and Huobi today froze accounts containing approximately $1.4 million worth of crypto assets that originated from the June 2022 hack of Harmony’s Horizon Bridge.
“Horizon’s cross-chain bridge was attacked on June 24, 2022, resulting in the loss of $99.6 million worth of crypto assets. These funds were then laundered through the now licensed Tornado Cash,” the blockchain analytics firm detailed. Ethereum mixer Tornado Cash was banned last August by the US Department of Treasury’s Office of Foreign Assets Control (OFAC).
The Horizon Bridge hacker sent more than 98% of the $100 million in stolen crypto assets to the Tornado Cash mixer, Elliptic said in June last year. The stolen crypto assets included ether (ETH), tie (USDT), wrapped bitcoin (WBTC) and Binance coin (bnb), the firm noted, adding that the hacker immediately used Uniswap to convert the Ethereum-based assets to 85,837 ETH.
Elliptic investigators traced the entire trail of funds through the mixer and attributed the hack to the Lazarus Group, a North Korean-controlled cybercrime organization. The Federal Bureau of Investigation (FBI) later confirmed the involvement of the Lazarus Group in the hack. Elliptical continued:
The stolen funds lay dormant until recently, when our investigators began seeing them funneled through complex transaction chains to exchanges.
Elliptic CEO Simone Maini commented:
Today money laundering was detected and stolen funds linked to North Korea were frozen, in real time.
“As an industry, we have the power and responsibility to prevent digital assets from becoming a haven for money launderers and sanctions evaders, and to ensure that they are a force for good,” added the CEO.
What do you think about Binance and Huobi freezing crypto assets tied to North Korea? Let us know in the comments section.
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