PumpFun, a platform based on Solana that has gained attention for its rapid growth in the memecoin industry, recently removed tokens associated with the Bybit hackers from its homepage. This decision came after it was revealed that Lazarus, a cyber organization from North Korea, created 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 Alertpic.twitter.com/Z0VD0Ye0sR
— Mario Nawfal’s Roundtable (@RoundtableSpace) February 23, 2025
Memecoin as a Tool for Laundering Funds
A recent investigation discovered that the Lazarus hackers created a token called “QinShihuang” on the PumpFun platform. After transferring 60 SOL to a designated address, which was then used to mint 500,000 “QinShihuang” tokens, the token was issued. Within less than three hours, the trading volume for the token reached $26 million.
Exploiting the speculative nature of the memecoin market to quickly distribute illicitly obtained funds, this technique was simple yet effective. It was difficult to trace the stolen funds as the tokens were sold to different traders who were unaware of their origin. If this sounds like a plot from a crime movie, it likely is.
Techniques for Fund Obscurity
However, the Lazarus group did not stop there. They also employed various methods to conceal the trace of the stolen funds. One method involved utilizing the eXch exchange platform.
Funds that were converted into SOL through this platform were then converted into more difficult-to-track cryptocurrencies, such as Bitcoin and Monero. This allowed them to hide the source of the funds and avoid detection by security agencies.
On the other hand, this incident highlights a significant issue in the crypto industry: how to provide financial independence without enabling illicit activities. Many cryptocurrency services are currently grappling with this dilemma, especially in light of changing regulations and increasing government pressure.
PumpFun and Its Responsibilities
One could interpret PumpFun’s decision to remove tokens connected to hackers as an effort to maintain the integrity of the network. However, the question remains whether this was driven by moral consciousness or merely to avoid legal repercussions.
In fact, PumpFun has previously faced pressure from various parties regarding the content it facilitates. Currently, a US law firm is suing PumpFun for allowing the creation of tokens that infringe on intellectual property rights. It is alleged that the platform made around $500 million from various coins that are considered unregistered securities. Therefore, their decision to delist tokens associated with Lazarus may be a defensive measure.
A New Era for Memecoins?
Despite the controversy, PumpFun continues to innovate. Previously, CNF reported that the platform has launched a mobile app for iOS and Android, making memecoin trading more accessible and enabling real-time portfolio management from anywhere.
Does this signify that memecoins will evolve beyond mere speculative assets? Or will there be more cases involving malicious actors like Lazarus? One thing is certain: in the world of crypto, innovation and manipulation often go hand in hand.