Key Takeaways
- On-chain analyst ZachXBT says North Korea’s Lazarus Group has laundered billions using DeFi-based OTC networks.
- Much of the laundering is happening through Tron’s ecosystem, which critics say lacks meaningful controls.
- The crypto industry is facing what ZachXBT calls a “crime supercycle,” with massive hacks and little accountability.
North Korea’s notorious Lazarus Group has reportedly laundered billions of dollars worth of stolen crypto over the past year, and much of it has flowed through Tron’s opaque DeFi infrastructure.
The group, responsible for several major crypto exchange hacks, including the $1.5 billion Bybit exploit and a $236 million theft from WazirX, is taking full advantage of decentralized protocols and unregulated OTC brokers, according to well-known blockchain investigator ZachXBT.
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Lazarus Group Laundering Billions Through Tron, ZachXBT Warns
In a detailed on-chain analysis, ZachXBT said illicit actors are operating in what’s known as the “Black U” market — an underground network using Tron’s low-fee blockchain to move stablecoins like USDT.
OTC brokers split and shuffle funds using swap pools, new wallets, and peer-to-peer trading methods, making them difficult to trace.
ZachXBT noted that an estimated $5 billion to $10 billion in funds have passed through these channels, adding that the activity is largely unregulated and has become a “safe haven” for laundering.
Criticism of Tron and Industry Apathy
While critics have pointed fingers at Tron (TRX) for enabling this laundering infrastructure, the network’s creators argue that decentralized protocols can’t control how open-source tools are used.
In response, TRON DAO has said it supports anti-crime efforts, including collaboration with Tether and TRM Labs through the T3 Financial Crime Unit (T3 FCU).
Still, many argue that these efforts are reactive and minimal, especially in the face of billion-dollar laundering operations.
ZachXBT didn’t hold back in his assessment of the broader crypto industry either.
In a recent post, he labeled the current era a “crime supercycle”, saying platforms and influencers are enabling scams with little to no consequences.
“Influencers and KOLs face zero repercussions for scamming followers,” he wrote.
“Courts are siding with smart contract exploiters due to outdated laws. If you ever wanted the opportunity to exit the industry, there has not been a better time.”
A Broken System?
Despite the scale and frequency of hacks, very few protocols have taken meaningful steps to freeze stolen funds or proactively prevent laundering.
For hackers like Lazarus, that’s a green light.
And for the rest of the industry, ZachXBT’s warnings are yet another reminder that crypto’s biggest threat may not be regulation — it may be its own inaction.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
