Lazarus Group Gains Momentum: Cleanses More Than $13 Million with Tornado Cash

The infamous Lazarus group, widely believed to have connections with the North Korean government, has once again made headlines in the cryptocurrency world by laundering $13 million through Tornado Cash. Between March 13 and 14, 2024, the group conducted over 40 transactions, sending more than $13 million worth of ETH from the HTX/HECO thefts to Tornado Cash.

Leading blockchain analytics firm, Elliptic, and other experts have concluded that the Lazarus group is responsible for the HECO heist. This incident was one of the biggest tragedies to hit the cryptocurrency market, with $100 million stolen from the HTX exchange and its HECO cross-chain bridge in November 2023.

Despite being sanctioned, the Lazarus group has shown a preference for using Tornado Cash, as revealed in the Chainalysis Crypto Crime Report of 2023. Previously, the group had used Sinbad as their mixer of choice, but after it was sanctioned and shut down in November 2023, they turned to Bitcoin-based mixer YoMix. Now, they have switched back to Tornado Cash to evade sanctions and law enforcement.

Tornado Cash itself was sanctioned by the U.S. Treasury in August 2022 for its involvement in laundering funds from Lazarus Group hacks. However, due to its decentralized nature and smart contract-based technology, it continues to operate without obstacles. Unlike centralized mixers like Sinbad.io, Tornado Cash cannot be seized and shut down.

The Lazarus group is a North Korean threat group known for conducting large-scale crypto heists, having stolen over $500 million in cryptocurrency in 2023 alone. Their targets include HTX/HECO, Poloniex, Coinex, Stake, Alphapo/Coinspaid, and Atomic Wallet. The group has been incredibly active, averaging over $2.93 million stolen per day.

The U.S. law authorities are determined to uncover and prosecute those who use technology to conceal their crimes, regardless of how sophisticated their methods may be. Just as the founder of Bitcoin fog, Roman Sterlingov, was found guilty of laundering $400 million worth of cryptocurrency in September, the co-founder of Tornado Cash, Roman Storm, will also face a courtroom trial. The outcome of this case will have implications for the future of crypto mixing services and their presence in the U.S. markets.