ZachXBT Says Chinese Crime Network Laundered Over $1B for…
By Abdelaziz Fathi
AI summary of the source article
Blockchain investigator ZachXBT disclosed that he posed as a customer using $349,700 of his own USDC to infiltrate a Chinese organized crime network laundering cryptocurrency for North Korean cyber operations. The investigation focused on laundering trails from the February 2025 Bybit hack, which totaled approximately $1.5 billion. ZachXBT's findings helped identify a wallet cluster containing over $12 million in Bybit-linked funds across Bitcoin, Ethereum, Solana, and Tron, leading Tether to freeze 442,000 USDT. The operation revealed sophisticated cross-chain laundering across bridges such as THORChain and links to entities like Huione Guarantee, highlighting how rapidly stolen crypto is dispersed before centralized intermediaries can freeze it.
Why it matters
The investigation underscores the challenges of crypto recovery, showing that identifying onchain movement often requires offchain intelligence before centralized issuers or exchanges can act. It also highlights how cross-chain bridges and OTC networks outpace asset freezes following major hacks.
Key facts
- ZachXBT used $349,700 of his own USDC to infiltrate an alleged laundering network that handled over $1 billion linked to North Korean exploits.
- The undercover effort helped identify over $12 million from the $1.5 billion Bybit hack across Bitcoin, Ethereum, Solana, and Tron.
- Tether froze 442,000 USDT tied to the wallet cluster identified during the operation.