A Chinese Network Laundered More Than $1 Billion for North Korea's Lazarus Group, Says ZachXBT

A blockchain investigator went undercover inside a laundering operation tied to North Korea's most notorious hacking crew, and what he uncovered reveals a vulnerability that puts every crypto holder on an exchange at risk.

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In a revealing report, blockchain investigator ZachXBT claims that a Chinese crime network laundered more than $1 billion for North Korea’s Lazarus Group. This figure includes a significant portion of the roughly $1.5 billion in Ethereum (CRYPTO:ETH) and other tokens stolen from the Bybit exchange back in February 2025. ZachXBT presented his findings in a detailed 12-part thread on X on October 5, 2026.

ZachXBT went beyond merely analyzing blockchain data; he spent months posing as a client of the laundering network. He shared his findings with law enforcement prior to going public, although authorities have yet to announce any charges.

While $1 billion is staggering, most people keep their crypto in exchange accounts or mobile wallets, so they may not directly interact with a compromised platform. So, what does it mean for the safety of your crypto when there’s a laundering network linked to North Korean hackers?