ZachXBT: North Korean hackers launder $1.4 billion reveals serious problems in the crypto industry in terms of security vulnerabilities and hacker attacks

PANews reported on March 18 that according to the on-chain detective ZachXBT, in the process of assisting the freezing of Bybit hacking funds, it deeply realized that the crypto industry has serious problems in security vulnerabilities and hacking attacks. He said that nearly 100% of the monthly transaction volume and fees of multiple "decentralized" protocols have recently come from the North Korean hacker group DPRK, but these projects refuse to assume any responsibility.

Additionally, centralized exchanges (CEXs) responded slowly, and hackers took only a few minutes to launder money, while some CEXs took hours to take action. ZachXBT also criticized the KYT (Transaction Monitoring) system for having serious flaws and easy to evade. The KYC (identity Authentication) mechanism is more like a data breach risk for ordinary users due to account leakage and internal personnel issues, but is almost ineffective in preventing illegal capital flows. He pointed out that the recent successful laundering of $1.4 billion in North Korean hacker DPRK has fully exposed the compliance and security system loopholes in the industry, and is worried that only if the government enforces supervision, the industry can improve.