Bitrabo Editorial
Reports indicate that 500 Bitcoin, valued at around $30.4 million, have been transferred from a cryptocurrency address linked to the $305 million DMM Bitcoin hack that transpired in May. The suspect address divided the funds among two new addresses, each receiving approximately 250 BTC.
Insight into the DMM Bitcoin Hack
The transferred funds are suspected to be part of the stolen amount related to the 4,502.9 BTC taken during the DMM Bitcoin exchange breach in May. Initially valued at $305 million, the stolen sum is now worth over $274 million. To assist victims, DMM Bitcoin promptly secured $320 million in response to the hack.
Noteworthy blockchain investigator ZachXBT has linked the attack to the Lazarus Group, a well-known hacking entity allegedly associated with the Democratic People’s Republic of Korea. ZachXBT’s analysis and off-chain indicators strongly suggest the involvement of the Lazarus Group in the heist.
Post-attack, the perpetrators fragmented the stolen Bitcoin into smaller portions of 500 BTC and shifted them to new wallets. Recent movements indicate that the latest funds moved post-May 31 originated from one of these wallets.
Previously, ZachXBT claimed that the attackers transferred around $35 million worth of Bitcoin to the Cambodian-based exchange Huione Guarantee, which has faced allegations of aiding in money laundering stemming from crypto hacks and other illicit acts.
Prior Challenges Faced by DMM Due to the Hack
Typically, the DMM Bitcoin attackers funnel the pilfered cryptocurrency through privacy mixers before transitioning it to Ethereum and Avalanche via THORChain. Subsequently, the assets are converted to Tether, moved to Tron, and deposited on Huione.
In July, the DMM Bitcoin encountered a loss of 48 billion yen ($305 million) in Bitcoin due to the breach. The exchange disclosed that 4,502.9 BTC was “leaked” from their platform and implemented precautions to avoid further unauthorized outflows.
In response to the breach, DMM Bitcoin ceased all spot trading on its platform and warned of potential delays in Japanese yen withdrawals. This incident marks another addition to the rising incidents of cryptocurrency thefts in 2024, which had already accounted for losses exceeding $473 million before this event, being the second largest hack in Japan after Coincheck’s 58 billion yen loss in 2018.
As per the Chainalysis report, illegal activities on blockchain networks have decreased by nearly 20% year-to-date. However, there has been an uptick in malware activities and stolen funds, with stolen fund inflows doubling to $1.58 billion from $857 million last year. Ransomware inflows also increased by approximately 2% to $459.8 million.
Featured image from Ideogram, the chart from Tradingview.com.