ZachXBT: North Korean hackers successfully laundered $1.4 billion, exposing vulnerabilities in industry compliance and security systems

ChainCatcher news reports that on-chain detective ZachXBT revealed that during his assistance in freezing Bybit hacker funds, he became acutely aware of the serious issues regarding security vulnerabilities and hacker attacks in the crypto industry. He stated that multiple "decentralized" protocols have recently derived almost 100% of their monthly trading volume and fees from the North Korean hacker group DPRK, yet these projects refuse to take any responsibility.

Moreover, centralized exchanges (CEX) are slow to respond, allowing hackers to launder money in just a few minutes, while some CEXs take hours to take action. ZachXBT also criticized the KYT (Know Your Transaction) system for its serious flaws, which are easy to circumvent, and noted that the KYC (Know Your Customer) mechanism poses more of a data leak risk for ordinary users due to account leaks and insider issues, while being nearly ineffective in preventing the flow of illegal funds.

He pointed out that North Korean hackers DPRK recently successfully laundered $1.4 billion, fully exposing the compliance and security system vulnerabilities within the industry, and expressed concern that only government-mandated regulations could lead to improvements in the industry.