The United States Federal Bureau of Investigation (FBI) has flagged six Bitcoin (BTC) wallets linked to North Korean state-backed hacking group Lazarus. The six wallets contain 1,580 BTC worth $40 million believed to be hoarded from various cryptocurrency hacks over the past year.
The FBI in its investigation found that Lazarus Group moved approximately 1,580 BTC linked with several crypto exploits. These funds are currently sitting in the following Bitcoin addresses:
3LU8wRu4ZnXP4UM8Yo6kkTiGHM9BubgyiG
39idqitN9tYNmq3wYanwg3MitFB5TZCjWu
3AAUBbKJorvNhEUFhKnep9YTwmZECxE4Nk
3PjNaSeP8GzLjGeu51JR19Q2Lu8W2Te9oc
3NbdrezMzAVVfXv5MTQJn4hWqKhYCTCJoB
34VXKa5upLWVYMXmgid6bFM4BaQXHxSUoL
The FBI warned crypto companies that the movement of funds linked to the infamous North Korean hacking group could be a sign that they are looking to sell. The federal investigation agency advised crypto companies to keep an eye out for the six BTC wallets and use blockchain data to keep track of any movement of funds.
“Private sector entities should examine the blockchain data associated with these addresses and be vigilant in guarding against transactions directly with, or derived from, the addresses.”
The North Korean hacking group has been actively involved in multiple crypto-linked exploits over the years, stealing billions of dollars worth of crypto assets. A recent report from TRM Labs suggests that the North Korean hackers have stolen nearly $2 billion in crypto since 2018. The group was most active in 2022, having stolen nearly $1 billion worth of crypto assets last year alone.
2022 saw some of the biggest decentralized finance (DeFi) exploits, and Lazarus Group was identified as the mastermind behind Harmony’s Horizon bridge and Sky Mavis’ $625-million hack on Ethereum-linked sidechain Ronin Bridge last year.
Although crypto-linked exploits due to code vulnerabilities in platforms and protocols have increased due to the sophistication in methods used by these hackers, blockchain technology still makes it problematic for exploiters to launder or move their ill-gotten gains due to the public ledger that makes it possible to track the movement of funds.
Law enforcement agencies like the FBI, along with crypto companies, have worked together on several occasions in the past to freeze funds linked to such exploits. Earlier in February this year, Huobi and Binance froze $1.4 million worth of crypto assets linked to North Korea. Similarly, $63 million worth of assets linked to the Harmony Bridge hack was also frozen by crypto exchanges.
Brandon Ferrick, general counsel at Douro Labs, said that the Securities and Exchange Commission’s (SEC) openness to public input on crypto policy and their roundtable discussions are positive signs that the crypto industry is not currently experiencing regulatory capture.
In an interview with Cointelegraph, Ferrick identified signs of regulatory capture including, a public-to-private sector revolving door of employees, the same roster of attendees at regulatory events, and special treatment given to certain crypto projects. However, Ferrick added:
“The reason why I am not worried today is that a lot of what you’re seeing from the regulatory side, like the SEC, for example, is totally open, public, and there are available opportunities to have conversations with the regulators about changing or thinking about the regulatory structures.”
“[The SEC] has a public portal where you can just submit written commentary on your thoughts for the crypto regulatory environment, and you can schedule meetings with them,” the attorney continued.
Crypto Industry executives and panelists discuss cohesive crypto regulation at the SEC’s first crypto roundtable in March 2025. Source: SEC
As the crypto industry becomes more integrated with the traditional financial system and engages state regulators more, some analysts and executives are worried that the industry is experiencing regulatory capture that will skew incentives and politicize the burgeoning crypto sector.
SEC hosts several roundtable discussions on crypto policy
The SEC has hosted several crypto roundtable discussions and panels, with more slated in the coming months — a sharp contrast from the agency’s regulation-by-enforcement approach under former SEC chairman Gary Gensler.
On March 21, the regulatory agency hosted its first crypto roundtable, which featured crypto industry executives, SEC officials, and even opponents of the crypto industry.
Former SEC official John Reed Stark was highly critical of the industry and opposed comprehensive regulatory reform, arguing that digital assets must comply with existing securities laws.
Former SEC official John Reed Stark addresses the SEC’s March 2025 crypto roundtable. Source: SEC
The SEC’s April 11 roundtable focused on trading rules and included a different set of panelists, including representatives from Uniswap and Coinbase.
Whales and institutions are increasing their Bitcoin holdings ahead of Easter, as market analysts predict a weekend with less volatility after two weeks of heightened volatility driven by escalating global trade tensions.
London-based investment firm Abraxas Capital acquired 2,949 Bitcoin (BTC) worth more than $250 million during the four days leading up to April 19.
In the latest transaction, the firm bought over $45 million worth of Bitcoin from Binance on April 18, according to crypto intelligence firm Lookonchain, citing Arkham Intelligence data.
The investment came days after Michael Saylor’s Strategy bought $285 million worth of Bitcoin at an average price of $82,618 per BTC, as the world’s largest corporate Bitcoin holders signal continued confidence in Bitcoin, amid global tariff uncertainty.
Large Bitcoin investors, or whales, continue accumulating, absorbing over 300% of Bitcoin’s yearly issuance as exchanges continue losing coins at a historic pace, Cointelegraph reported on April 18.
Crypto analysts eye quiet Easter weekend after weeks of turmoil
Despite continued accumulation from whales and institutions, volatility concerns were raised by significant movements from the medium-term Bitcoin cohort, which holds coins for an average of three to six months.
Over 170,000 Bitcoin entered circulation from the medium-term cohort, a development that may signal “imminent” crypto market volatility, according to pseudonymous CryptoQuant analyst Mignolet.
“The effect of this metric on LTF moves is overstated as large onchain movement of coins hardly ever affects weekend price action since it’s not on liquid markets or CEX markets,” analysts at Bitfinex exchange told Cointelegraph, adding:
“It is important to note that funding rates remain relatively flat currently. Moreover, US markets are closed as we have a long weekend for Easter, so volatility could be suppressed barring headlines from the White House.”
Marcin Kazmierczak, chief operating officer of RedStone Oracles, added that the recent movements may be operational transfers, not necessarily signs of imminent selling pressure.
Still, concerns over weekend volatility have been amplified over the past two weeks after the Mantra (OM) token’s price collapsed by over 90% on Sunday, April 13, from roughly $6.30 to below $0.50, triggering market manipulation allegations and highlighting “critical” liquidity issues in the industry.
Two weeks ago, on April 6, Bitcoin fell below $75,000 on Sunday, as investor concerns spread from a record-breaking $5 trillion sell-off from the S&P 500, its largest on record.
The correction was caused by Bitcoin’s 24/7 trading availability, which made it the only large liquid asset available for de-risking on Sunday, Blockstream CEO Adam Back told Cointelegraph.
“On a weekend, there’s not much volume. So you have a worse risk of rapid sort of flash crashes or flash dips that get filled in again,” he said.
The growing adoption of cryptocurrencies may pose risks to the traditional financial system and exacerbate wealth inequality, according to the Bank for International Settlements (BIS).
In an April 15 report, the BIS warned that the number of investors and amount of capital in crypto and decentralized finance (DeFi) have “reached a critical mass,” with investor protection becoming a “significant concern for regulators.”
The size of the crypto market signals that authorities should be worried about the “stability of crypto over and above the role it may have for TradFi and the real economy,” the report states, highlighting the role of stablecoins, which the BIS said have “become the means through which participants transfer value within crypto.”
BIS report on crypto and DeFi’s functions and financial stability implications. Source: BIS
The report calls for targeted stablecoin regulation on stability and reserve asset requirements that will guarantee the redemption of stablecoins for US dollars during “stressed market conditions.”
The report comes two weeks after the US House Financial Services Committee passed the Stablecoin Transparency and Accountability for a Better Ledger Economy, or STABLE Act, with a 32–17 vote on April 2.
The STABLE Act aims to create a clear regulatory framework for dollar-denominated payment stablecoins, emphasizing transparency and consumer protection.
On March 13, the GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins, passed the Senate Banking Committee by a vote of 18–6. The act aims to establish collateralization guidelines and require full compliance with Anti-Money Laundering laws from stablecoin issuers.
The BIS also raised concerns about how crypto markets may worsen income inequality by enabling larger investors to capitalize on the emotions of less sophisticated retail participants, as seen during the FTX collapse in 2022.
Whale vs retail activity after FTX collapse. Source: BIS
“As prices tumbled in 2022, users actually traded more,” the BIS report noted. “Most disturbingly, large bitcoin holders (“whales”) were selling as ordinary retail investors (“krill”) were buying.” It added:
“This implies that the crypto market, which is often presented as an opportunity for inclusive growth and financial stability, can be a means for redistributing wealth from the poorer to the wealthier.”
The report concludes that DeFi and TradFi have similar underlying economic drivers, but DeFi’s “distinctive features,” like “smart contract and composability,” present new challenges that need proactive regulatory interventions to “safeguard financial stability, while fostering innovation.”