ZachXBT Unmasks Yicong Wang’s Ties to Lazarus Group Hacks

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.