Stablecoin Issuers Crack Down on Lazarus Group, Circle Criticized for Delay

• Four major stablecoin issuers blacklisted wallets linked to the North Korean Lazarus Group, seizing $6.98 million in total.
• Circle faced backlash for delaying its action by 4.5 months compared to other stablecoin issuers.
• The Lazarus Group continues its attacks, recently being linked to a $20.5 million hack on the Indodax exchange.

Tether and three other major stablecoin issuers have taken decisive action against the notorious North Korean hacking group, Lazarus Group, by blacklisting multiple crypto wallets linked to the group. Tether, Circle, Paxos, and Techteryx collectively blocked access to addresses allegedly used by the hackers to launder millions of dollars in cryptocurrency. 

The crackdown comes in the wake of an investigation by blockchain analyst ZachXBT, who reported that the wallets contained a total of $4.96 million, with an additional $1.65 million frozen across various exchanges.

Circle Criticized for Delayed Response

On September 14, blockchain investigator ZachXBT revealed that the blacklisted wallets were connected to the Lazarus Group, known for laundering over $200 million from more than 25 crypto hacks between 2020 and 2023.

While Tether, Paxos, and Techteryx moved swiftly to block the funds, Circle, the issuer of USDC, faced criticism for taking 4.5 months longer to take action. ZachXBT publicly questioned Circle’s delay, accusing the company of profiting from transactions while failing to protect the digital asset ecosystem.

Ongoing Threat from Lazarus Group

Despite these efforts, the Lazarus Group remains a significant threat in the crypto landscape. Most recently, on September 11, the group was linked to a $20.5 million attack on the Indonesian exchange, Indodax. This ongoing cybercrime activity underscores the need for continued vigilance in the cryptocurrency industry to prevent further exploitation by such groups.