Share this article

Binance and Huobi Freeze $1.4M in Crypto Tied to Harmony Bridge Theft

Tracing firm Elliptic said it followed the money through Tornado Cash.

(RyersonClark/Getty Images)
(RyersonClark/Getty Images)

Crypto exchanges Binance and Huobi on Tuesday froze $1.4 million in crypto tied to the Harmony Bridge heist and its alleged North Korean hackers, according to crypto tracing firm Elliptic.

In a blog post, Elliptic said it provided intelligence to the two exchanges that prompted them to freeze accounts. It said it traced the funds back to the $100 million hack of a “bridge” that allowed Harmony blockchain users to move crypto assets between different ecosystems.

STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Long & Short Newsletter today. See all newsletters

Binance and Huobi did not immediately respond to a request for comment.

Federal investigators have credited North Korea’s infamous hacker wing the Lazarus Group with attacking the bridge as part of their multi-year campaign to steal hundreds of millions of crypto dollars from exchanges and infrastructure. That campaign funds North Korea’s nuclear weapons program, investigators have said.

Read more: North Korea Crypto Theft Hit Record High Last Year, UN Says: Reuters

Elliptic further claimed it followed the now-frozen Harmony funds through Tornado Cash, the privacy-focused mixing service that purports to hide one’s tracks on the public Ethereum ledger. The U.S. sanctioned Tornado Cash because of its alleged use by North Korean hackers.

Danny Nelson

Danny is CoinDesk's managing editor for Data & Tokens. He formerly ran investigations for the Tufts Daily. At CoinDesk, his beats include (but are not limited to): federal policy, regulation, securities law, exchanges, the Solana ecosystem, smart money doing dumb things, dumb money doing smart things and tungsten cubes. He owns BTC, ETH and SOL tokens, as well as the LinksDAO NFT.

Danny Nelson