Tether has blacklisted a wallet holding $29.6 million worth of USDT stablecoins connected to the Cambodian online marketplace, Huione Guarantee.
The move comes after recent findings linked a portion of these funds to the notorious hack of the Japanese crypto exchange, DMM Bitcoin.
Over the weekend, Tether, a leading stablecoin issuer, froze a wallet associated with Huione Guarantee.
This wallet contained nearly $30 million in USDT, of which at least $14 million was tied to the DMM Bitcoin hack.
In early June, DMM Bitcoin suffered a major security breach, losing an estimated $300 million in an unauthorized outflow of funds.
The Lazarus Group, a well-known hacking organization, is suspected to be behind the DMM Bitcoin hack.
On-chain investigator ZachXBT revealed that $35 million connected to the hack was funnelled through Huione Guarantee.
The group’s laundering techniques and off-chain indicators point to their involvement.
ZachXBT detailed the laundering path used for the stolen funds, including depositing BTC into a mixer, withdrawing BTC from the mixer, bridging funds from Bitcoin to Ethereum or Avalanche, swapping for USDT and bridging to Tron and transferring USDT to Huione.
Huione Guarantee has been under scrutiny for its alleged involvement in money laundering.
Last week, blockchain analytics firm Elliptic reported that Huione merchants have facilitated numerous illicit transactions, laundering billions of dollars from various internet scams and crypto schemes.
The marketplace has become a hub for criminal organizations, particularly those involved in “pig butchering” scams.
ZachXBT continues to monitor over 500 Bitcoin, Tron, and Ethereum addresses linked to the DMM Bitcoin hack.
His findings have brought to light the extensive network of illicit activities associated with Huione and its affiliates.
