In the world of cryptocurrency, many people buy, sell, and trade digital coins like Bitcoin. Unfortunately, some individuals use these digital currencies for illegal activities. A recent investigation has uncovered a shocking story about Yicong Wang, a Chinese trader who allegedly helped a notorious hacking group launder over $17 million in stolen money. This story involves the Lazarus Group, a cybercrime organization linked to North Korea, which has been behind many big thefts in the crypto world.
Who is Yicong Wang?
The trader at the center of this investigation is named Yicong Wang. He is known as an over-the-counter (OTC) trader, which means he buys and sells cryptocurrencies directly with other people instead of on exchanges like Binance or Coinbase. Yicong Wang has been accused of working with the Lazarus Group since 2022. According to ZachXBT, a popular expert in tracking cryptocurrency transactions, Yicong Wang helped the group convert stolen digital money into cash.
ZachXBT reported that one of his followers had a concerning experience with Yicong Wang. This follower had their account frozen after completing a peer-to-peer transaction with him. In August 2024, Yicong Wang allegedly reached out to this individual to make a large exchange, offering a much lower rate for converting USDT (a type of digital currency tied to the U.S. dollar) to Chinese yuan than what the market usually offered. This raised red flags about Yicong Wang’s activities.
The Big Money Behind the Hacking
Yicong Wang is believed to have used his trading skills to launder money from the Lazarus Group by converting stolen cryptocurrencies into cash. The investigation found that one of Yicong Wang’s wallets, called “0x501,” was linked to over 25 hacks conducted by the Lazarus Group. These hacks have resulted in a staggering loss of more than $17 million worth of cryptocurrency.
The Lazarus Group is infamous for its cybercrimes, including a major theft in 2022 where they hacked the Ronin bridge and stole around $600 million. This bridge is a platform that allows users to transfer cryptocurrencies between different blockchains, making it an attractive target for hackers. With the funds they obtained, the Lazarus Group has funded various illicit activities, including North Korea’s missile programs.
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Because of these illegal activities, cryptocurrency firms are always on high alert. In November 2024, Tether, a well-known company that issues the USDT stablecoin, froze $374,000 that was linked to Yicong Wang’s wallet after the authorities flagged it. Freezing these funds is one way that companies and governments try to combat the illegal use of cryptocurrencies.
Warnings from the FBI
In light of these events, the Federal Bureau of Investigation (FBI) in the United States has issued warnings about the Lazarus Group and its activities. They have stated that this group is increasingly using social engineering tactics to steal funds. Social engineering means manipulating people into revealing personal information or making mistakes that help the criminals.
The FBI reported that North Korean hackers are targeting workers at cryptocurrency companies, attempting to gain access to sensitive information through elaborate tricks and schemes. This warning comes at a time when many cryptocurrency firms are trying to protect themselves from such threats.
Experts believe that the Lazarus Group could also be eyeing large cryptocurrency exchange-traded funds (ETFs) in the U.S. ETFs are investment funds that hold various cryptocurrencies, and they often manage significant amounts of money. If the Lazarus Group were to successfully target these funds, it could lead to even more substantial thefts.
Moreover, concerns have been raised about the potential involvement of North Korean developers in the Cosmos ecosystem, a platform for building decentralized applications. Some experts warn that these developers could introduce vulnerabilities or “backdoors” into the system, allowing the Lazarus Group to exploit them in the future.
