Crypto tracing firm Elliptic reported on Tuesday that it provided intelligence to Binance and Huobi that led to the freezing of $1.4 million in cryptocurrency linked to the Harmony Bridge heist and alleged North Korean hackers. The funds were traced back to the $100 million hack of the bridge, which facilitated the transfer of cryptocurrency assets between various ecosystems on the Harmony blockchain. Elliptic also claimed to have followed the frozen Harmony funds through Tornado Cash, a privacy-focused mixing service that allegedly conceals one’s activities on the public Ethereum ledger. The United States has sanctioned Tornado Cash for its supposed use by North Korean hackers.
Crypto Exchanges Freeze Funds
In response to Elliptic’s intelligence, Binance and Huobi froze $1.4 million in cryptocurrency allegedly tied to the Harmony Bridge heist and North Korean hackers. According to Elliptic, the funds were traced back to the $100 million hack of a “bridge” that allowed Harmony blockchain users to move crypto assets between different ecosystems.
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Elliptic claims to have followed the now-frozen Harmony funds through Tornado Cash, a privacy-focused mixing service that is said to conceal one’s tracks on the public Ethereum ledger. The US has sanctioned Tornado Cash because of its alleged use by North Korean hackers.
North Korean Hackers
Federal investigators have attributed the attack on the bridge to North Korea’s infamous hacker group, the Lazarus Group, as part of a multi-year campaign to steal hundreds of millions of dollars worth of cryptocurrency from exchanges and infrastructure. According to investigators, the campaign funds North Korea’s nuclear weapons program.
Neither Binance nor Huobi immediately responded to requests for comment on the frozen funds. However, the two exchanges’ swift action in response to Elliptic’s intelligence suggests a commitment to maintaining the integrity of their platforms.
