PumpFun, a platform based on Solana, which has gained attention for its rapid growth in the memecoin industry, recently removed tokens associated with the Bybit hackers from its homepage. This decision was made after it was revealed that Lazarus, a cyber organization from North Korea, had developed the memecoin in order 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 Money Laundering
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.
By exploiting the speculative nature of the memecoin market, this technique allowed for the quick distribution of illicitly obtained funds. Tracking the stolen funds was challenging because the tokens were sold to various traders who were unaware of their origin. If this sounds like a plot from a crime movie, it probably is.
Methods to Obfuscate Funds
However, the Lazarus group did not stop there. They also employed various methods to conceal the origin 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-trace cryptocurrencies, such as Bitcoin and Monero. This enabled 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 space: how to provide financial freedom without creating opportunities for illicit activities. Many cryptocurrency services are currently grappling with this dilemma, especially considering changing regulations and increasing governmental pressure.
PumpFun and Its Responsibilities
One could interpret PumpFun’s decision to remove tokens associated with hackers as an effort to maintain the integrity of its network. However, it is unclear whether this decision was driven by moral consciousness or simply to avoid legal trouble.
In fact, this platform 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 claimed that the site has made around $500 million from different coins that are considered unregistered securities. Therefore, the delisting of tokens connected to Lazarus may be a defensive move.
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, 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.