Crypto sleuth ZachXBT accused Chinese OTC trader Yicong Wang of crypto money laundering. Since 2022, Yicong has allegedly laundered tens of millions in cryptoassets stolen by Lazarus Group.

Lazarus Group, an infamous North Korean hacker collective, has demonstrated an ability to steal and launder hundreds of millions of USD in crypto hacks.

Lazarus Group Money Laundering

Crypto investigator ZachXBT has identified Chinese OTC trader Yicong Wang as a key player in laundering stolen crypto assets for the Lazarus Group, a notorious North Korean hacking organization. ZachXBT, known for exposing scams, shared a detailed flowchart mapping Yicong’s wallet addresses.

The data highlights transactions linking Yicong to hacked accounts and illicit funds, further implicating him in facilitating the laundering of stolen assets.

Read more: Who Is ZachXBT, the Crypto Sleuth Exposing Scams?

The Lazarus Group is a crypto hacker collective of worldwide renown, based in North Korea. In October, the US accused the group of a staggering $879 million in crypto thefts, and began seizing its assets. These sophisticated hackers, however, have used a variety of laundering operations, moving $35 million through Cambodia in July.

ZachXBT said that a social media follower initially contacted him, claiming their exchange account was frozen after a P2P transaction with Yicong. The platform informed this anonymous user that they violated its terms of service by laundering stolen funds from Lazarus. The user subsequently gave ZachXBT relevant wallet data, conversation screenshots, and more.

However, while ZachXBT was attempting to connect the money trail, Yicong reached out again. He claimed he could offer this anonymous user a transfer from (USDT) to Chinese yuan at substantially below market rates. This can be a telltale sign of scammer activity, as in the recent example of Valeria “Bitmama” Fedyakina.

ZachXBT did not state a concrete amount of stolen assets that Yicong laundered for Lazarus Group. However, he pointed out several specific incidents in the multimillion dollar range, and claimed that Yicong helped “convert tens of millions of stolen crypto to cash” since 2022. Furthermore, in a separate thread, ZachXBT touched on the difficulty of definitively tracking these funds.

“[I] have not seen numbers publicly reported anywhere before, but I estimate Coinbase support social engineering / phishing scams have resulted in $100M-$150M stolen in just the past year from its users,” he stated.

Read More: 15 Most Common Crypto Scams To Look Out For

Despite the progress in fighting crypto scams, complex phishing operations are on the rise. Yicong’s various accounts have been banned from various platforms, but ZachXBT believes he has simply changed his business strategies.

“It’s apparent from on-chain he has still been actively helping Lazarus Group within the past couple weeks. Hopefully at some point in the future Yicong Wang will be held accountable for his actions,” he finished.

Ethereum price extended losses and tested the $2,450 support zone. ETH is recovering losses and faces many hurdles near the $2,550 level.

• Ethereum started a downside correction below the $2,550 support.
• The price is trading below $2,550 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $2,560 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it clears the $2,550 and $2,600 resistance levels.

Ethereum Price Starts Recovery

Ethereum price extended its decline below the $2,600 level like Bitcoin. ETH traded below the $2,550 and $2,500 support levels to enter a short-term bearish zone.

The price traded as low as $2,445 and is currently correcting losses. There was a minor increase above the $2,500 level. The price traded above the 23.6% Fib retracement level of the downward move from the $2,758 swing high to the $2,445 low.

Ethereum price is now trading below $2,550 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $2,550 level. There is also a key bearish trend line forming with resistance at $2,560 on the hourly chart of ETH/USD.

The first major resistance is near the $2,600 level. It is close to the 50% Fib retracement level of the downward move from the $2,758 swing high to the $2,445 low.

A clear move above the $2,600 resistance might send the price toward the $2,650 resistance. An upside break above the $2,650 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,700 resistance zone in the near term. The next hurdle sits near the $2,720 level or $2,750.

Another Decline In ETH?

If Ethereum fails to clear the $2,550 resistance, it could start another decline. Initial support on the downside is near the $2,520 level. The first major support sits near the $2,500 zone.

A clear move below the $2,500 support might push the price toward $2,450. Any more losses might send the price toward the $2,450 support level in the near term. The next key support sits at $2,420.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now near the 50 zone.

Major Support Level – $2,450

Major Resistance Level – $2,550