tl;dr
On-chain investigator ZachXBT reports that funds stolen in recent crypto exchange hacks linked to North Korea’s Lazarus Group have been laundered through illicit networks and small OTC brokers, with the “Black U” market on the Tron blockchain valued between $5 billion and $10 billion, much of it unt...
North Korea’s Lazarus Group has been laundering billions in stolen cryptocurrency through illicit networks and small over-the-counter (OTC) brokers, severely undermining enforcement efforts. On-chain investigator ZachXBT reveals that the “Black U” market on the Tron blockchain alone is valued between $5 billion and $10 billion, with a significant portion of its transactions remaining untraceable. High-profile attacks on platforms such as Bybit, DMM Bitcoin, and WazirX demonstrate how easily stolen assets are laundered, with laundering groups outpacing regulatory actions.
ZachXBT criticizes crypto protocol teams that continue to profit from fees while ignoring illicit activities, pointing out that over 50% of some protocol usages may stem from stolen funds. He highlights the emergence of a “crime supercycle,” characterized by minimal accountability and a surge in abuse following meme coin launches by politicians, influencer scams, and courts siding with exploiters rather than victims. Without stronger enforcement or increased public pressure, this cycle threatens long-term damage to the crypto ecosystem.
Adding a new dimension to their tactics, Lazarus Group has launched a malware campaign called “ClickFix” targeting centralized finance (CeFi) job seekers. By impersonating major crypto firms like Coinbase and Tether, they trick victims into installing malware during fake job interviews, representing a disturbing evolution in social engineering attacks aimed at non-technical professionals in the crypto space.
This growing menace raises critical questions about the resilience of crypto markets to abuse and the effectiveness of current regulatory frameworks. If the majority of stakeholders remain indifferent until directly affected, the “crime supercycle” may worsen, robbing the ecosystem of trust and legitimacy. As these illicit activities flourish, the crypto community faces an urgent call to action to demand accountability and strengthen enforcement to safeguard the future of digital finance.