Chinese OTC Trader Linked to Lazarus Group’s Crypto Laundering: ZachXBT

On-chain investigator ZachXBT has exposed Yicong Wang, a Chinese over-the-counter (OTC) trader, for allegedly facilitating the conversion of stolen cryptocurrency to cash for the notorious Lazarus Group.

The investigation reveals a complex network of transactions involving tens of millions in stolen funds from multiple high-profile hacks since 2022.

1/ Meet Yicong Wang (王逸聪), a Chinese OTC trader who has helped Lazarus Group convert tens of millions of stolen crypto to cash from various hacks via bank transfers since 2022. pic.twitter.com/ARcwC7r3Xr

— ZachXBT (@zachxbt) October 23, 2024

ZachXBT reveals trail of stolen assets

The investigation uncovered multiple wallet addresses and transactions linking Wang. Wang operated under pseudonyms, including Seawang, Greatdtrader, and BestRhea977, to various crypto heists:

• A $17 million consolidation from over 25 Lazarus Group hacks led to the blacklisting of 374,000 USDT by Tether in November 2023.
• Approximately $4.5 million from the May 2024 Alex Labs hack
• $1.3 million from the July 2024 Irys co-founder breach
• Connection to a Tether-blacklisted Ethereum address holding 948,000 USDT in August 2024

Wang’s alleged operation involved offering below-market rates for large USDT to CNY conversions. The recent activity includes a proposed 1.5 million USDT transaction in August 2024.

Despite being banned from platforms like Paxful and Noones, Wang reportedly continues operations through off-platform channels.

The investigation revealed sophisticated money laundering techniques, including the use of privacy protocols and cross-chain transfers between Ethereum and Tron networks.

Multiple instances show stolen funds being bridged to Tron addresses connected to Wang shortly after major hacks.

ZachXBT’s investigation began after a follower reported having their exchange account frozen following a peer-to-peer transaction with Wang.

The subsequent blockchain analysis exposed connections to various high-profile cryptocurrency thefts, including the EasyFi, Bondly, and Maverick co-founder hacks.