Despite setbacks such as asset freezes and transaction fees, the group is believed to have successfully laundered more than $1.5 billion for the North Korean regime.
She said:
“Even if we optimistically say they lost 15% to freezes and fees and brokers that’s still over $1.5 billion dollars to the authoritarian regime of a nation with a total GDP <$30 billion.”
To obscure their tracks, the hackers reportedly moved the stolen assets through a complex chain of transactions, often using decentralized exchanges, blockchain bridges, and crypto mixers.
The final phase typically involves offloading assets through over-the-counter (OTC) brokers, enabling the regime to extract fiat currency with minimal scrutiny.
According to him:
“While it’s true the industry has historically been ripe for abuse it has noticeably increased since politicians launched meme coins and numerous court cases were dropped further enabling the behavior.”
While blockchain networks offer transparency, ZachXBT noted that the lack of consistent enforcement enables hackers to thrive.
He warned that laundering networks and OTC brokers have become increasingly effective at cleaning stolen funds, especially from recent exchange hacks.
ZachXBT also criticized the lack of regulatory enforcement, pointing out that many influencers promoting fraudulent projects rarely face consequences.
According to him, this further fuels a culture of impunity as the regulators focus their energy on decentralized developers and open-source projects rather than those violating the laws.
He said:
“Government agencies could probably have made $50-100M issuing fines to all of the influencers / projects who never disclosed paid ads over the years (is illegal in many jurisdictions but just never prosecuted).”
