Blockchain investigator ZachXBT says he infiltrated a Chinese criminal syndicate accused of laundering more than $1 billion in cryptocurrency on behalf of North Korea's Lazarus Group, according to a report published by Coinfomania on October 5, 2026.
ZachXBT, who has built a reputation for tracing illicit crypto flows without institutional backing, claims the network he penetrated handled funds tied to Lazarus Group operations. The group is widely linked to North Korea and has been associated with some of the largest crypto thefts on record.
Among the funds connected to the laundering network are assets traced back to the hack of Bybit, an exchange best known for derivatives trading. The scale of the alleged laundering operation, exceeding $1 billion, places it among the larger illicit finance networks reported in connection with North Korean state-linked hacking activity.
An independent investigator's role
The case underscores the growing role played by independent researchers in tracking state-linked crypto crime. ZachXBT has previously published findings on various hacks and laundering schemes, often ahead of formal law enforcement disclosures, relying on open blockchain data and his own network of sources.
For European exchanges, custodians and compliance teams, the report is a reminder that laundering networks tied to Lazarus Group activity operate across jurisdictions and exchange types, and that attribution work increasingly comes from outside traditional regulatory or law enforcement channels.
No further details on the methods used by ZachXBT to infiltrate the syndicate, nor on the identities of individuals involved, have been disclosed in the Coinfomania report. Bybit has not issued a public statement referenced in connection with this specific claim.
The Lazarus Group has been named by investigators and governments in connection with a string of major crypto thefts over recent years, with proceeds frequently funnelled through layered laundering chains before reaching off-ramps. The scale described in this latest claim, spanning more than $1 billion, would represent one of the larger single networks reported to date.
