Tether and Others Freeze Millions Tied to Lazarus Group Wallets

• Four stablecoin issuers have reportedly blacklisted multiple wallets linked to Lazarus Group.
• The wallets are suspected to have been used to launder millions.
• However, one stablecoin issuer acted four months later after others, drawing criticism.

Tether and three other stablecoin issuers have reportedly blocked multiple crypto wallets linked to the dreaded North Korean hacking consortium, the Lazarus Group.

On September 14, blockchain detective ZachXBT reported that the USDT issuer, Circle, Paxos, and Techteryx, had blacklisted two addresses tagged as belonging to the hacking group. The wallets contained $4.96 million, with another $1.65 million frozen across various exchanges.

These funds are linked to an April 29 investigation by ZachXBT, which uncovered how the Lazarus Group allegedly laundered $200 million from over 25 crypto hacks between 2020 and 2023. Per the blockchain detective, the total frozen funds from the investigation now stand at $6.98 million following today’s development.

While various users on X lauded the development, ZachXBT quickly faulted Circle for taking longer to blacklist the addresses.

Circle Lands in ZachXBT’s Crosshairs

In a reply to Circle’s X post announcing New York as its headquarters, ZachXBT slammed the USDC issuer for delaying today’s action against the Lazarus Group for “4.5 months.”

“Not once have you ever blacklisted after a DeFi exploit / hack when there was ample time while you continue to profit off the transactions. You took 4.5 months longer than every other major issuer to blacklist Lazarus Group funds,” ZachXBT wrote.

Noting that he was “so tired” of Circle’s virtue signaling while it was the problem, ZachXBT claimed that the stablecoin issuer and its leadership “do not care at all” about the digital asset ecosystem “except extracting from it.”

Meanwhile, the Lazarus Group continues to wreak havoc in the crypto landscape, with blockchain security experts linking it to a $20.5 million attack on Indodax on September 11.

Stay updated on Tether’s partnership with TRON and TRM Labs:
Tether Taps TRON and TRM Labs to Fight Illicit Use of USDT

Read about Tether’s recent pivot to agriculture:
Tether Goes From Crypto to Crops in Shock $100M Deal