- PumpFun removed tokens linked to the Bybit hacker after discovering their role in laundering stolen funds through rapid memecoin trading.
- The Bybit hacker used PumpFun to launch the memecoin ‘QinShihuang,’ executing trades worth $26M within three hours before being flagged and removed.
PumpFun, a Solana-based platform that has made news for its quick expansion in the memecoin space, recently removed tokens linked to the Bybit hackers from its homepage. The ruling followed revelations that Lazarus, a North Korean cyber organization, developed the memecoin to launder stolen funds from the Bybit crypto platform.
JUST IN: PUMPFUN JUST REMOVED MEMECOINS RELATED TO THE BYBIT HACKER FROM FRONTEND
Source: Whale Alert pic.twitter.com/Z0VD0Ye0sR
— Mario Nawfal’s Roundtable (@RoundtableSpace) February 23, 2025
Memecoin as a Tool for Laundering Funds
A recent investigation found that the Lazarus hackers created a token called “QinShihuang” on the PumpFun platform. Following their 60 SOL transfer to a designated address, which subsequently was utilized for minting 500,000 “QinShihuang,” the token was issued. In under three hours, the trading volume for the token surged to $26 million.
Using the memecoin market’s speculative character to rapidly distribute the proceeds of crime, the technique was basic but efficient. It was challenging to track the pilfers since the tokens were sold to different traders ignorant of their provenance. Should this sound like a plot from a crime film, then it most likely is.
Fund Obscurity Techniques
Still, the Lazarus group never stopped there. They also applied several different methods to hide the trace of stolen funds. One approach is to take advantage of the eXch exchange platform.
Funds that have been turned into SOL via this site are subsequently transformed into more difficult to track crypto assets, including Bitcoin and Monero. This approach lets them hide the source of the money and evade security agent notice.
Conversely, this incident draws attention to a significant problem in the crypto space: how to provide financial independence without creating doors for illicit activities? Many cryptocurrency services are currently struggling with this dilemma, particularly given changing laws and growing governmental pressure.
PumpFun and Its Responsibilities
One can clearly interpret PumpFun’s moves to remove hacker-related tokens as an attempt to uphold the integrity of the network. The issue is, though, whether this was motivated by moral consciousness or only to stay off of legal hot ground.
In fact, this platform has previously received pressure from various parties regarding the content they facilitate. Actually, a US law firm is suing PumpFun right now for letting tokens with intellectual property rights to be created. From different coins said to be unregistered securities, the site is claimed to have made around $500 million. Therefore, their decision to delist tokens connected to Lazarus might be only a defensive one.
A New Era for Memecoins?
Despite the controversy, PumpFun continues to innovate. CNF previously reported that the platform has launched a mobile app for iOS and Android. This move makes memecoin trading more approachable so users may enter the market from anywhere and real-time portfolio management is possible.
Is this a sign that memecoins will continue to change into more than just wild speculation? Or will there be more cases like this involving malicious actors like Lazarus? One thing is certain: in the world of crypto, innovation and manipulation often go hand in hand
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