PumpFun, a platform based on Solana, which has gained attention for its rapid growth in the memecoin market, recently removed tokens associated with the Bybit hackers from its homepage. The decision was made after it was revealed that a North Korean cyber organization called Lazarus had developed a memecoin called “QinShihuang” 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.
By exploiting the speculative nature of the memecoin market, this technique allowed for the quick distribution of stolen funds. Tracking the stolen funds was difficult 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 most likely is.
Fund Obscurity Techniques
However, the Lazarus group didn’t stop there. They also employed various methods to hide the trace of the stolen funds. One method involved utilizing the eXch exchange platform.
Funds that were converted to SOL on this platform were then converted into more difficult-to-track cryptocurrencies, such as Bitcoin and Monero. This allowed them to conceal the source of the money and evade detection by security agencies.
On the other hand, this incident highlights a significant issue in the crypto space: how to provide financial independence without creating opportunities for illicit activities? Many cryptocurrency services are currently struggling with this dilemma, especially with changing laws and increasing government pressure.
PumpFun and Its Responsibilities
PumpFun’s decision to remove tokens related to the hackers can be seen as an effort to maintain the network’s integrity. However, the question remains whether this was driven by moral consciousness or simply a way to avoid legal trouble.
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 with intellectual property rights. It is claimed that the site has made around $500 million from various coins that are considered unregistered securities. Therefore, their decision to delist tokens connected to Lazarus may be purely defensive.
A New Era for Memecoins?
Despite the controversy, PumpFun continues to innovate. It was 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.
Is this a sign that memecoins will evolve beyond wild speculation? 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.