Elliptic reports that the Atomic Wallet hacker sent cryptocurrency to a mixer used by Lazarus Group.

Illicit funds obtained from the Atomic Wallet hack, which was worth $35 million, have been transferred to a cryptocurrency mixer that is known to be favored by North Korea’s most notorious cyber-hacking group.

On June 5th, Elliptic, a blockchain compliance analytics company, reported that its Investigations Team had traced the funds from the Atomic Wallet hack to the Sinbad.io cryptocurrency mixer.

It claims that this mixing service was previously used to launder over $100 million in cryptocurrency assets that had been stolen by North Korea’s Lazarus Group.

Elliptic did not specify how much was sent to the mixer, but it noted that the stolen funds were being exchanged for Bitcoin (BTC) before being obscured through the mixer.

Analysis of the ongoing Atomic Wallet hack, from our new Investigations Team account @Elliptic_Inv https://t.co/gbm3dX34JB

— Elliptic (@elliptic) June 5, 2023

The company also reported that Sinbad.io is likely a rebranded version of Blender.io, “another mixer heavily used to launder Lazarus Group funds,” and the first mixer to be sanctioned by the U.S. Treasury Department.

On June 3rd, several user accounts on Atomic Wallet were compromised, resulting in losses of up to $35 million. However, the company has downplayed the incident, claiming that the attack only affected less than 1% of its monthly active users.

Atomic Wallet’s Chief Marketing Officer, Roland Säde, told Cointelegraph that his team is “doing everything they can to get those funds back,” adding that “in order to create a concrete plan, the investigation must be completed.”

“Of course, the team is devastated as we have been very proud about our security. We are working around the clock to get it all resolved and come out of this crisis stronger than before.”

Related: Atomic Wallet exploited, users report loss of entire portfolios

Säde suggested that victims should track the illicit transfers and report them to the most popular crypto exchanges, which “could prevent the scammers from exchanging their funds.”

“Of course, we are also reporting them directly, but the more eyes on hackers, the harder it is for them to move their funds,” he said.

However, it may be too late for many in light of Elliptic’s latest findings.

Magazine: Should crypto projects ever negotiate with hackers? Probably