Coindesk Logo

Atomic Wallet Hackers Move Stolen Funds via OFAC-Sanctioned Exchange Garantex: Elliptic

Atomic Wallet Hackers Move Stolen Funds via OFAC-Sanctioned Exchange Garantex: Elliptic

Atomic Wallet Hackers Move Stolen Funds via OFAC-Sanctioned Exchange Garantex: Elliptic

The attackers are believed to be the infamous North Korean hacker group Lazarus, as per blockchain security firm Elliptic.

The attackers are believed to be the infamous North Korean hacker group Lazarus, as per blockchain security firm Elliptic.

The attackers are believed to be the infamous North Korean hacker group Lazarus, as per blockchain security firm Elliptic.

AccessTimeIconJun 13, 2023, 8:16 AM
Updated Jun 13, 2023, 3:07 PM
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Attackers behind earlier this month’s $35 million exploit of crypto wallet Atomic Wallet are moving stolen funds via OFAC-sanctioned exchange Garantex, blockchain security firm Elliptic said Tuesday.

Elliptic investigators believe Atomic Wallet was hacked by the infamous North Korean hacking group Lazarus, as previously reported.

Last year, the Office of Foreign Assets Control (OFAC) of the U.S. Treasury sanctioned Garentex, stating the exchange had lax anti-money laundering measures and that it allowed “illicit players” to freely move money using the service. However, Garantex continues to operate.

Elliptic security researchers said in a tweet on Tuesday that several crypto exchanges have already frozen addresses related to the Atomic Wallet hack, but some funds have found their way to Garantex.

These funds were previously exchanged via the on-chain trading tool 1inch, transferred to Garantex, and then traded for bitcoin (BTC). The bitcoin was then laundered through Sinbad, a bitcoin mixer service allegedly used by North Korean hacking groups.

Nearly $35 million worth of various tokens were stolen from Atomic Wallet, a centralized storage and wallet service, on June 3. These tokens include bitcoin (BTC), ether (ETH), tether (USDT), dogecoin (DOGE), litecoin (LTC), BNB coin (BNB) and Polygon's MATIC.

Atomic Wallet said at the time that the impacted users represented “less than 1% of its monthly active users.” Investigations were ongoing as of June 8.

Edited by Parikshit Mishra.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.