Illegal funds obtained from the $35 million Atomic Wallet hack are making their way to a crypto mixer known to be a favorite of North Korea’s most notorious cyber-hacking group.
On June 5, blockchain compliance analytics firm Elliptic reported that its investigative team found funds ranging from the $35 million Atomic Wallet hack to crypto mixer Sinbad.io.
It claims the mixing service was previously used to launder more than $100 million in crypto assets stolen by North Korea’s Lazarus Group.
Elliptic did not specify how much money was sent to the mixer, but noted that the loot was exchanged for Bitcoin (BTC) before being obscured by the mixer.
The firm reported that Sinbad.io is likely to be a rebranded version of Blender.io, “another mixer used heavily by the Lazarus Group to launder funds” and the first mixer sanctioned by the US Treasury Department.
On June 3, several Atomic Wallet user accounts were compromised, causing losses of up to $35 million. However, the firm denied the incident, claiming that the attack affected less than 1% of its monthly active users.
Atomic Wallet’s chief marketing officer, Roland Seid, told Cointelegraph that “the team is doing everything they can to get those funds back,” adding: “In order to create a concrete plan, the investigation must be completed.”
“Of course, the team is devastated because we pride ourselves on our security. We are working around the clock to fix all that and come out of this crisis stronger than ever.
Related: Atomic Wallet has been exploited and users are reporting the loss of entire portfolios
He suggested that victims track unauthorized transfers and report them to the most popular crypto exchanges, which “can prevent scammers from transferring their funds.”
“Of course, we report them directly, but there are more eyes on the hackers and it is difficult for them to move them,” he said.
However, it may be too late for many in light of Elliptic’s latest findings.
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