Lazarus Group transferred more than $240 million in ETH through THORChain. Why did it convert it to native BTC?

Lazarus Group is notorious and has been active in the field of cybercrime for a long time. In the past, large-scale cryptocurrency theft operations have been launched, accumulating a large amount of illegal income. Its behavior pattern is complex and its capital transfer path is hidden. This time, ETH is transferred through THORChain must have a profound meaning behind it.

THORChain is unique and can realize the interaction of different blockchain assets as a cross-chain decentralized transaction protocol. It provides a trading environment with high anonymity, which can blur the flow of funds to a certain extent, and facilitates the operation of funds for organizations such as Lazarus Group.

ETH is a popular cryptocurrency and is trading actively. But it is in the Ethereum ecosystem and regulation is relatively concerned. Lazarus Group holds a large amount of ETH and is prone to exposure to risks. Transfer ETH may be found to get rid of tracking and find safer and more hidden ways to store and transfer.

Native BTC has unique advantages. Bitcoin was born early and is the originator of cryptocurrency, with a high degree of decentralization and anonymity. Its blockchain network is mature and widely recognized as a means of value storage worldwide, which is more in line with the needs of Lazarus Group's hidden assets.

In comparison with anonymity, although ETH has a certain privacy protection, transaction information can still be traced. Bitcoin transactions, through public and private key systems, have low correlation with the user's real identity, which can better protect Lazarus Group's funds transfer.

In terms of market liquidity, ETH and BTC have high liquidity. But BTC has a stronger position in the global cryptocurrency market, with greater transaction depth and breadth. After Lazarus Group exchanges BTC, assets are more likely to flow quietly around the world.

At the regulatory level, ETH is likely to attract regulatory attention due to its rich application scenarios and smart contracts. BTC is relatively simple, and as a value storage tool, it is more difficult to regulate, and Lazarus Group uses this to reduce the risk of being hit by regulators.

THORChain's cross-chain function provides Lazarus Group with a channel to convert assets. It can quickly convert ETH into native BTC, and the process is relatively hidden, reducing the risk of leaving traces on traditional trading platforms.

Lazarus Group may expect future value growth for Bitcoin. Compared with ETH, the total amount of Bitcoin is fixed and has stronger scarcity. Judging from the historical price trend, Bitcoin often shows strong resilience in market fluctuations, becoming a potential choice for its asset appreciation.

In addition, holding diversified crypto assets can diversify risks. Lazarus Group optimizes asset allocation by converting ETH into BTC to avoid excessive losses to its illegal income by fluctuations in a single asset.

During the transfer of funds, THORChain's handling fee mechanism may also attract Lazarus Group. The handling fee is relatively reasonable, and the cost may be further reduced through technical means in cross-chain transactions, which is in line with the organization's pursuit of maximizing interests.

Moreover, THORChain's community governance model is relatively loose, which provides an opportunity for Lazarus Group's operations. In an environment where there is relatively lack of centralized supervision, they are more free to complete capital transfer and asset exchange.

Lazarus Group may utilize THORChain's liquidity pool. By operating in liquidity pools, obfuscating the source of funds and making it more difficult to track their capital transfer paths, thus ensuring asset security.

Bitcoin has many decentralized network nodes and is widely distributed. This makes Lazarus Group’s asset storage more secure and difficult to be centrally cracked down or frozen, providing a reliable safe haven for its illegal funds.

From a technical perspective, the blockchain structure of ETH and BTC is different. Lazarus Group may believe that BTC's blockchain structure is more stable and has stronger anti-attack capabilities. Converting assets to BTC can reduce losses caused by technical risks.

Furthermore, Lazarus Group may have specific money laundering or transaction needs. In some illegal trading scenarios, Bitcoin is more popular because of its characteristics, and converting ETH to BTC makes it easier for them to integrate into a specific underground economic system.

THORChain's smart contract functionality may also be exploited by the Lazarus Group. By writing specific smart contracts, automatic redemption from ETH to BTC is realized, reducing human operation traces and improving the efficiency of capital transfer.

Bitcoin has a unique position in the global cryptocurrency market landscape. Lazarus Group holds Bitcoin and can better integrate into the global network of illegal funds to trade or cooperate with other criminal organizations.

Bitcoin’s mining mechanism also adds mystery to it. Lazarus Group may believe that holding Bitcoin generated through complex mining can further conceal the source of funds and increase the difficulty of tracking.

In addition, competition in the ETH market is becoming increasingly fierce, and new projects and tokens are emerging. By contrast, the Bitcoin market has a solid position and Lazarus Group's choice to convert assets into BTC can avoid losses in the uncertainty of the ETH market.

THORChain's continuous development of cross-chain technology may provide Lazarus Group with more innovative ways to operate funds. They may use new technical features to achieve more efficient and hidden ETH to BTC conversion.

From the perspective of market sentiment, Bitcoin has always been the focus of investors. Lazarus Group may want to take advantage of the market's pursuit of Bitcoin and sell BTC at the right time to obtain higher profits, so first convert ETH into BTC.

Lazarus Group may be linked to some Bitcoin-related underground industrial chains. Holding Bitcoin makes it easier for them to interact with these industrial chains and obtain more illegal benefits, which is also a potential reason for exchanging BTC.

Bitcoin is widely used in dark web transactions. As an illegal organization, Lazarus Group exchanges ETH to BTC in order to better conduct transactions on the dark web to adapt to the trading ecosystem of the dark web.

There may be some loopholes or under-regulated links in the THORChain ecosystem. With its technical capabilities, Lazarus Group has discovered and exploited these vulnerabilities to successfully complete the transfer of ETH to BTC and reduce the risk of being discovered.

In the world of cryptocurrencies, reputation and trust are crucial. Lazarus Group may face more resistance in the ETH ecosystem due to multiple crimes. In the Bitcoin ecosystem, its identity is relatively easier to hide, which helps them carry out subsequent illegal activities.

Bitcoin’s code is open source and has been tested for years. Lazarus Group may believe that based on the security of Bitcoin code, its assets are more difficult to crack or steal, and can better protect the security of illegal income than ETH.

Furthermore, there are differences in regulatory policies for ETH and BTC in countries around the world. Lazarus Group may choose to convert ETH to BTC by studying policies and finding that holding BTC is more likely to evade regulatory risks in certain regions or situations.

THORChain has a wide user base, including some participants in illegal activities. Lazarus Group uses group cover to complete the transfer of ETH to BTC, increasing the difficulty of tracking.

Bitcoin’s scarcity and limited issuance characteristics make it uniquely valuable in the black market. Lazarus Group may value this, converting ETH to BTC in order to get higher returns in black market trading.

Lazarus Group may have mastered some bitcoin-related trading skills or insider information. By converting ETH to BTC, they expect to take advantage of these advantages to gain greater benefits in the Bitcoin market, whether through trading spreads or other illegal means.

In cryptocurrency market volatility, the price trends of Bitcoin and ETH are not exactly the same. Lazarus Group may have analyzed market trends and believed that holding BTC at the current stage can better resist market risks and ensure asset value, so it has carried out asset exchange.

THORChain's cross-chain transaction records storage method may be relatively vague. Lazarus Group takes advantage of this feature to convert ETH into BTC through THORChain, making it difficult to clearly trace the capital transfer records, thereby protecting its own illegal assets.

Bitcoin’s wallet technology is relatively mature, and there are a variety of highly anonymous wallets to choose from. To better conceal assets, Lazarus Group chose to exchange ETH for BTC in order to use these anonymous wallets to store and transfer funds.

Additionally, Lazarus Group may plan to launch a new illegal project, which requires more funds toward Bitcoin. Therefore, they exchanged ETH for BTC to meet the funding needs for project start-up and operation.

Bitcoin is at a critical position in the flow of capital in the global cryptocurrency market. By converting ETH into BTC, Lazarus Group can better integrate into the global capital flow network, making it easier to transfer and use funds in different regions and transaction scenarios.

There may be some regulatory loopholes in THORChain's operating model. Lazarus Group discovered and exploited these vulnerabilities to safely and efficiently complete ETH to BTC redemption on the THORChain platform, evading regulatory scrutiny.

Bitcoin’s value stability is better than ETH to some extent. As a holder of illegal funds, Lazarus Group pays more attention to the preservation of assets. Converting ETH to BTC can better maintain asset value during market fluctuations and ensure that its illegal income does not shrink.

Lazarus Group may have collusions with some Bitcoin mines or related technical teams. Through this collusion, they can not only obtain Bitcoin, but also use relevant technologies and resources to further conceal the source of assets and transfer paths, which is also one of the reasons for exchanging BTC.

Furthermore, in the transaction settlement of cryptocurrencies, the settlement speed and cost of Bitcoin have advantages in some cases. Lazarus Group has chosen to exchange ETH for BTC in consideration of the efficiency and cost of capital use, so as to make settlements more convenient in subsequent illegal transactions.

There may be some privacy protection mechanisms for THORChain's cross-chain transactions. Lazarus Group uses these mechanisms to maximize the protection of transaction information from being leaked while converting ETH into BTC, ensuring the security and obscurity of fund transfers.

Bitcoin has a very high market awareness and has a large number of holders and investors around the world. Lazarus Group may think that holding Bitcoin can better integrate into the global cryptocurrency market, even if the assets are illegal, it can hide traces in the huge market.

Lazarus Group may have plans to cooperate with other international criminal organizations, and Bitcoin is a common means of payment in international illegal transactions. In order to successfully carry out the cooperation, they exchanged ETH into BTC in order to meet the funding required for the cooperation.

From the perspective of technological upgrades, Bitcoin’s blockchain technology is constantly evolving, and new privacy protection and security enhancement technologies are constantly emerging. Lazarus Group may be able to convert ETH into BTC to improve the security and obscurity of assets in order to leverage these new technologies.

Additionally, there may be some groups in THORChain’s community that are tolerant of illegal activities. Lazarus Group uses this community environment to complete the transfer of ETH to BTC on THORChain, reducing the risk of being reported by community members.

Bitcoin’s anonymous trading technology is constantly developing, such as some coin mixing services. Lazarus Group may plan to use these anonymous trading technologies to further obfuscate the flow of Bitcoin funds, so first convert ETH into BTC to prepare for subsequent operations.

Amid the growing global cryptocurrency regulation, Lazarus Group needs to find safer ways to store and transfer assets. Because of its decentralization and anonymity, Bitcoin has become their first choice for evading regulation, so it converts ETH into BTC.

THORChain's cross-chain transaction fee structure may have certain discounts on large-value transactions. Lazarus Group transfers more than US$240 million in ETH, and when it is exchanged for BTC, it can use this offer to reduce costs, which is in line with its pursuit of maximizing interests.

Lazarus Group may have specific expectations for the future cryptocurrency market, believing that Bitcoin has an advantage in future market competition. By converting ETH into BTC, layout in advance to gain benefits brought by future market changes.

Furthermore, Bitcoin’s mining difficulty adjustment mechanism makes its output relatively stable. Lazarus Group may think that based on this stability, the value of Bitcoin is more guaranteed and is more suitable for long-term holding and hidden assets than ETH, so it was redeemed.

THORChain's smart contract audit mechanism may be imperfect. Lazarus Group exploits this vulnerability to safely exchange ETH for BTC on THORChain by writing specific smart contracts, and is not easily discovered for illegal purposes of fund operations.

Bitcoin’s market depth and liquidity perform well in extreme market situations. Lazarus Group takes into account the realization of assets and converts ETH into BTC so that assets can be cashed and transferred more smoothly when there are large fluctuations in the market.

The Lazarus Group may have connections with some Bitcoin-related money laundering networks. By converting ETH to BTC, they can better integrate into these money laundering networks and legalize illegal funds, which is one of the important reasons for their exchange for BTC.

In the technological development trend of cryptocurrencies, Bitcoin’s Lightning Network and other layer two expansion technologies are constantly maturing. Lazarus Group may be optimistic about the future application of these technologies, and in order to use these technologies to improve the efficiency and obscureness of capital transfer, exchange ETH for BTC.

THORChain's cross-chain transaction data is stored on multiple nodes and the data is scattered. Lazarus Group uses this data storage method to exchange ETH into BTC through THORChain, making it difficult for regulators to centrally obtain and analyze their fund transfer data, thereby evading regulation.

Bitcoin’s global payment network is relatively mature and can quickly and conveniently transfer funds in different countries and regions. As a transnational criminal organization, Lazarus Group converts ETH into BTC to meet global payment needs in order to facilitate the use of illegal funds worldwide.

Lazarus Group may plan to carry out some high-risk illegal financial activities that require substantial financial support. Bitcoin has become an important tool for raising funds due to its high value and wide recognition in the cryptocurrency market, so it converts ETH into BTC.

In addition, THORChain's transaction verification mechanism may have some weaknesses that can be exploited. With its technical capabilities, Lazarus Group has discovered and exploited these weaknesses to successfully complete ETH to BTC on THORChain and reduce the risk of transactions being rejected or reviewed.

Bitcoin’s anonymity is not only reflected in the transaction address, but also includes some details in its transaction process. Lazarus Group may have studied these details in depth, believing that after converting ETH to BTC, it can better utilize the anonymous characteristics of Bitcoin and hide the source and whereabouts of funds.

Bitcoin is at the core of the ecosystem of the global cryptocurrency market and is associated with numerous other cryptocurrencies and financial services. By converting ETH into BTC, Lazarus Group can better utilize these relationships and expand the operating space and channels of illegal funds.

THORChain's cross-chain transactions may have some loopholes in interacting with other blockchains. Lazarus Group discovered and exploited these vulnerabilities to achieve hidden transfer of funds during the cross-chain exchange between ETH and BTC, while avoiding triggering security mechanisms for other blockchains.

Although Bitcoin’s blockchain browser can view transaction records, there are many ways for professional money launderers and illegal fund operators to confuse transaction information. Lazarus Group may master these methods, so choose to exchange ETH for BTC for better fund whitewashing operations.

Lazarus Group may have partnered with some underground financial institutions that prefer Bitcoin in funding operations. To meet the needs of cooperation and to hide funds with the services of these institutions, Lazarus Group exchanged ETH for BTC.

Furthermore, although the price of Bitcoin fluctuates greatly, its price trend is relatively predictable in certain specific market environments. Lazarus Group may predict the price increase trend of Bitcoin in the future through a professional market analysis team, so it converts ETH into BTC to obtain the benefits brought by the price increase.

In THORChain's community governance structure, there may be some members who are willing to facilitate the transfer of illegal funds for personal gain. Lazarus Group colluded with these members to complete the transfer of ETH to BTC on THORChain, and at the same time paid a certain amount of compensation to achieve the illegal purposes of both parties.

The mining process of Bitcoin involves a large amount of computing resources and energy consumption, which makes the acquisition of Bitcoin cost and difficulty. Lazarus Group may believe that by converting ETH to BTC, it can use this characteristic of Bitcoin to increase the "legality" of assets and reduce the risk of being tracked down.

In the market manipulation of cryptocurrencies, Bitcoin has become an important tool for some illegal organizations to manipulate the market due to its huge market capitalization and wide influence. Lazarus Group may plan to participate in the manipulation of the Bitcoin market by converting ETH into BTC to accumulate enough chips to achieve its illegal market manipulation purposes.

In addition, there may be some room for flexible adjustments to THORChain's cross-chain transaction fees. Lazarus Group reduces handling fees during the ETH to BTC redemption process by colluding with certain internal personnel on the THORChain platform or exploiting vulnerabilities in the platform rules, thereby improving the efficiency of utilizing illegal funds.

Bitcoin’s decentralized nature makes it not under the control of a single agency or government, which provides great convenience for illegal organizations such as the Lazarus Group. They can freely transfer bitcoin assets worldwide without worrying about being frozen or tracked down by a country or institution. By contrast, the ETH ecosystem may be more susceptible to regulators, so Lazarus Group chose to convert ETH into BTC.

Lazarus Group may have plans to use Bitcoin to carry out some cross-border illegal transactions in the future, such as smuggling and drug trafficking. Due to the wide acceptance and anonymity of Bitcoin worldwide, it is ideal for such cross-border illegal transactions, so they exchange ETH for BTC in preparation for future illegal activities.

THORChain's cross-chain transactions may have some partnerships or loopholes with other cryptocurrency projects. Lazarus Group exploits these partnerships or vulnerabilities to gain additional benefits or reduce the risk of discovery in the process of redeeming ETH to BTC. For example, they may whitewash and transfer funds by cooperating with certain projects to disguise illegal funds as normal project investment or transaction funds.

Bitcoin’s blockchain technology continues to develop, and new privacy protection technologies and anonymous transaction solutions continue to emerge. Lazarus Group may be paying attention to the development trends of these technologies, believing that after converting ETH to BTC, these new technologies can be better utilized to further enhance the hiddenness and security of assets. For example, some new Bitcoin wallet technologies can enable higher-level anonymous transactions, which Lazarus Group hopes to use by holding Bitcoin.

Bitcoin has always dominated the competitive landscape of the global cryptocurrency market. As an illegal fund holder, Lazarus Group is well aware of Bitcoin’s market position and influence. By converting ETH into BTC, they can better integrate into the global cryptocurrency market, take advantage of the market advantages of Bitcoin, and carry out various illegal activities such as money laundering, fraud, etc. At the same time, the wide recognition of Bitcoin also makes it easier for them to find counterparties in the market and realize the transfer and cashing of illegal funds.

Lazarus Group may have collusions with some Bitcoin mining pools or mining organizations. Through this collusion, they can not only acquire Bitcoin, but also use the resources and technologies of mining pools or mining organizations to further conceal the source of assets and transfer paths. For example, they can mix illegal funds into the proceeds of mining pools, making the source of funds blurred through complex transactions and transfer operations. Therefore, redeeming ETH to BTC becomes a necessary step for them to work with these mining pools or mining organizations.

Furthermore, although the price fluctuations of Bitcoin are large, in some cases, its price trend is related to the global economic situation and financial market fluctuations. Lazarus Group may predict the price trend of Bitcoin in the future through analysis of the global economic situation and financial markets, and believes that converting ETH to BTC can better protect asset value amid global economic fluctuations. For example, in a period of recession or financial market turmoil, Bitcoin may be considered a safe-haven asset and prices are expected to rise. Lazarus Group hopes to gain more economic benefits through this adjustment of asset allocation.