Who Is Yicong Wang? Chinese OTC Trader Laundered $17M for Lazarus Group

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As a seasoned crypto investor with over a decade of experience in this dynamic and rapidly evolving market, I’ve witnessed numerous twists and turns that have shaped the industry’s landscape. The recent revelation about Yicong Wang, the Chinese OTC trader linked to $17M in stolen cryptocurrency, is yet another reminder of the dark underbelly lurking within our digital frontier.

A Chinese individual named Yicong Wang is suspected of having cleaned illegal proceeds from stolen digital currencies worth tens of millions, which were attributed to the Lazarus Group, a well-known cybercriminal organization infamous for numerous high-profile cryptocurrency heists.

According to on-chain expert ZachXBT, it was uncovered that Wang has been transferring illicit funds, initially stolen by the Lazarus Group, through banks since the year 2022.

It was revealed who the trader was, as one of ZachXBT’s followers disclosed that their account had been frozen following a Peer-to-Peer (P2P) trade with an individual named Wang.

OTC Trader Yicon Wang Linked to $17M in Stolen Crypto

Recently, a significant revelation emerged within the realm of cryptocurrencies and cybersecurity. On-chain analyst ZachXBT disclosed on X that Yicong Wang, an OTC trader from China who stands accused, has allegedly laundered over $17 million in stolen digital currencies for North Korea’s Lazarus Group since 2022.

As reported by the prosecution, Wang was pivotal in converting these assets for the cybercriminals responsible for a series of significant cryptocurrency heists.

1/ Introducing Yicong Wang (ηŽ‹ι€Έθͺ), a Chinese over-the-counter (OTC) trader who has assisted the Lazarus Group in exchanging tens of millions of dollars worth of cryptocurrency stolen from various cyber attacks into cash through bank transfers since 2022.

β€” ZachXBT (@zachxbt) October 23, 2024

Among the addresses associated with Yicong Wang, one was identified as wallet “0x501. This wallet had accumulated over $17 million in cryptocurrency linked to more than 25 hacks carried out by the Lazarus Group. In November 2024, an on-chain investigator reported that Tether had frozen approximately $374,000 worth of USDt associated with this wallet.

Wang gained recognition as an active over-the-counter (OTC) trader in China, handling significant amounts of cryptocurrency trades outside of conventional exchanges. Although OTC trading provides advantages like privacy and adaptability, it has faced scrutiny due to its association with suspected illegal dealings.

Is OTC Trading a Haven for Criminals?

Yicong Wang stands charged with facilitating the laundering of cryptocurrencies that were initially stolen. By exchanging these digital assets for traditional currency (fiat money), he allegedly attempted to obscure their illicit origins. The stolen property was originally obtained from the Lazarus Group, and Wang is said to have used multiple methods to launder it through various disguised channels.

It’s said that he employed a method involving multiple transactions, which were carried out sequentially across different platforms and digital wallets. This technique was used to obscure the path of the stolen asset. Furthermore, there are suspicions that Wang may have enlisted other individuals and organizations in this scheme, making it more intricate and seemingly advanced in an attempt to deceive.

These allegations have thrown the spotlight on OTC trading platforms and individual traders handling multi-million dollar cryptocurrency transactions. This could inspire regulators worldwide to work harder to monitor and regulate OTC trading to prevent these kind of situations.

The significant repercussion of such prominent allegations might lead to a widespread decrease in trust towards the cryptocurrency market and OTC trading. As a result, when investors and traders grow more careful, the number of OTC transactions and their fluidity decreases.

Additionally, financial organizations and digital currency trading platforms implement Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations to enhance their ability to report any questionable activities. This additional layer of compliance increases the responsibility for all market players in this sector.

Lazarus Group Targets Crypto ETFs

Under the guidance of the well-known Lazarus Group, a cybercriminal organization linked to the North Korean administration, significant breaches in the realm of cryptocurrency are attributed to them, such as the $600 million heist of the Ronin bridge.

The U.S. Treasury continues its battle against intricate financial crimes such as money laundering, tax evasion, and theft. These criminal activities often involve complex structures that necessitate examining numerous transactions and reports to expose the illicit acts. However, the task has become significantly less daunting with the integration of Artificial Intelligence (AI). In a recent instance, AI and data-driven methods successfully revealed $4 billion worth of fraudulent operations.

This month, the U.S. Federal Bureau of Investigation issued a warning stating that the Lazarus Group had started using social engineering tricks. On September 3rd, an alert was released by the FBI indicating that North Korean hackers were attempting to steal funds from employees at decentralized finance and cryptocurrency companies through intricate and sophisticated social engineering strategies.

As reported by the federal agency, it appears that the individuals involved in the scam had conducted studies on companies tied to exchange-traded funds (ETFs) based on cryptocurrencies.

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2024-10-23 20:37