U.S. Seeks to Seize $2.67M Stolen by North Korea’s Lazarus Group

• The United States government is ramping up enforcement against the North Korea-linked Lazarus hacker group.
• Recent court filings aim to strip the group of their stolen assets.
• Several stablecoin issuers have recently joined the crackdown on Lazarus’ operations.

The North Korean hacker group Lazarus has built a reputation as one of the most notorious cybercriminal organizations in recent years, infiltrating institutions and stealing hundreds of millions in funds and assets. This has prompted heightened enforcement actions from regulatory authorities, aiming to expose their tactics and curb their influence.

In the latest, the United States has set its sights on seizing some of the group’s loot.

U.S. Moves to Seize Lazarus Group’s Illicit Gains

Recent court documents have revealed legal actions by the U.S. government to confiscate over $2.67 million in digital assets stolen by the North Korea-affiliated Lazarus Group .

Filed on October 4, 2024, the documents highlight the government’s move to reclaim approximately $1.7 million in Tether (USDT) , a portion of Lazarus’ illicit gains from the 2022 cyberattack on crypto options exchange Derbit .

The documents further reveal that the hackers attempted to launder the stolen funds through the sanctioned crypto mixer Tornado Cash, which likely aided authorities in tracing the transactions and crackdown on the group’s operations.

In a second filing, the government is also seeking the forfeiture of another $970,000, funds linked to the $41 million hack that rocked the crypto casino Stake.com in September 2023.

The latest actions come on the heels of increased pressure from the crypto industry to disrupt the group’s activities.

Tether and Others Freeze Funds Tied to Lazarus Group

Earlier in September 2024, several stablecoin issuers including Tether blocked multiple crypto wallets connected to Lazarus Group. 

The sanctioned wallets contained over $4.96 million, restricted along an additional $1.65 million frozen across various exchanges.

The seizures followed an alert by blockchain detective ZachXBT, following an investigation that uncovered that the group laundered hundreds of millions from over 25 crypto hacks between 2020 and 2023.

Despite the weight of these recent seizures, the Lazarus Group remains linked to some of the industry’s biggest heists, with their total loot reportedly exceeding $200 million.

On the Flipside

• The developers of Lazarus’s preferred mixing tool, Tornado Cash, are currently facing charges for facilitating the hacker group’s illicit activities.
• Lazarus Group is also suspected of being behind the recent $234 million hack on the Indian crypto exchange WazirX .
• According to the UN, North Korean hackers stole approximately $3 billion in over 58 crypto cyberattacks between 2017 and 2023. 

Why This Matters

The Lazarus Group poses a significant threat to the crypto industry, and the successful tracing of their illicit gains suggests that their days of anonymity are numbered. Additionally, intensifying regulatory actions mark progress in the fight against cybercrime, sending a strong message to malicious actors that industry security is strengthening.

Read this article for more about the operations of the dreaded Lazarus Group: 
Lazarus Evading Authorities: Blockchain and Laundering $200M  

Ethereum co-founder Buterin has continued to lend support to the inducted developers or Tornado Cash:
Vitalik Buterin Throws Third ETH Donation to Back Tornado Cash