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Yicong Wang, an OTC trader based in China, is accused of laundering millions of dollars’ worth of cryptocurrency stolen by the notorious Lazarus Group.
Allegations of Cryptocurrency Money Laundering
On-chain detective ZachXBT reported that Wang has been laundering assets stolen on behalf of the Lazarus Group since 2022 through bank transfers.
ZachXBT: “Yicong Wang played a central role in converting stolen cryptocurrency into cash.”
Wang’s identity surfaced after a follower of ZachXBT reported their account being frozen following a P2P transaction with him. Allegations state that Wang facilitated money laundering by converting stolen cryptocurrencies into cash. He purportedly tried to obscure the origins of the stolen cryptocurrency acquired from the Lazarus Group by laundering it through various channels.
Lazarus Group Targets Cryptocurrency ETFs
The cybercrime organization known as the Lazarus Group has conducted significant attacks on cryptocurrency markets, linked to the North Korean government. The U.S. Treasury Department is adopting AI and data-driven approaches to combat such financial crimes. The Lazarus Group has been behind numerous incidents, including the hack of the Ronin Bridge.
Earlier this month, the FBI announced that the Lazarus Group has adopted social engineering scams, targeting employees in decentralized finance and cryptocurrency firms.
These allegations raise the need for closer scrutiny of OTC trading platforms and individual traders managing million-dollar cryptocurrency transactions. Additionally, financial institutions and cryptocurrency exchanges are implementing Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements to complicate the efforts of those aiding criminals.
Today, ZachXBT disclosed the identity of the OTC trader linked to Lazarus. Wang was reportedly providing cash to Lazarus by using various methods to launder criminal proceeds. The truth emerged when a user’s account was closed after transacting with Wang.
