N. Korea Hacks Billions, Launders Via Memecoins

North Korean hackers, identified as the TraderTraitor group, are reportedly using memecoins as a novel method to launder billions of dollars stolen from Binance. Following a late last month hack, the group has allegedly been creating and utilizing new memecoins on various blockchains, including NEAR and Tron, to obscure the movement of illicit funds. This strategy involves establishing liquidity pools on decentralized exchanges, where stolen crypto is used to buy the newly created token, and then sold back into the same pool by separate wallets controlled by the launderers.

This memecoin tactic, while accounting for a small fraction of the total $6.3 billion stolen from Binance, adds another layer to TraderTraitor's extensive laundering operations. The group is also employing other techniques such as cross-chain bridges, lending vaults, and privacy pools, involving thousands of wallets across multiple blockchains. Notably, THORChain has again played a significant role, facilitating the movement of millions in stolen funds into bitcoin. The ultimate destination for these laundered assets appears to be bitcoin, with a portion undergoing CoinJoin transactions to enhance anonymity.