- ZachXBT accused Gerstein Harrow LLP of filing fraudulent claims over frozen crypto assets linked to North Korea’s Lazarus Group.
- The firm is attempting to claim approximately $71 million in frozen ETH connected to the April 2026 KelpDAO exploit.
- Lazarus Group has stolen over $6 billion in crypto since 2017 and caused 76% of all 2026 crypto hack losses.
Onchain investigator ZachXBT has accused U.S. law firm Gerstein Harrow LLP of filing fraudulent claims over frozen crypto assets linked to North Korea’s Lazarus Group. The firm is attempting to claim approximately $71 million in frozen ETH connected to the April 2026 KelpDAO exploit.
The KelpDAO exploit resulted in $71 million in losses, making it one of the largest crypto hacks of 2026. Lazarus Group, a state-sponsored hacking operation tied to the North Korean government, has been responsible for numerous high-profile crypto heists over the past decade.
ZachXBT’s investigation revealed that Gerstein Harrow LLP filed claims on behalf of alleged victims, but the onchain evidence suggests the funds actually belong to Lazarus Group, CoinDesk reports. The law firm has not responded to requests for comment.
“This is a clear case of attempting to steal stolen funds,” ZachXBT posted on X. “The law firm knows these assets are connected to Lazarus Group but is trying to claim them anyway.”
Lazarus Group’s Crypto Heists
Lazarus Group has stolen over $6 billion in cryptocurrency since 2017, making it one of the most prolific state-sponsored hacking operations in history. The group has targeted crypto exchanges, DeFi protocols, and individual wallets across the globe.
In 2026 alone, Lazarus Group has been responsible for 76% of all crypto hack losses, according to Reuters. The group’s sophisticated techniques and state backing make it particularly difficult for law enforcement to track and recover stolen funds.
The KelpDAO exploit was particularly brazen, as Lazarus Group exploited a vulnerability in the protocol’s smart contract to drain funds from user wallets. The attackers then moved the stolen ETH through multiple mixers and cross-chain bridges to obscure the trail.
Gerstein Harrow LLP’s attempt to claim the frozen funds raises serious legal and ethical questions. If the claims are found to be fraudulent, the law firm could face criminal charges and civil liability, Bloomberg Law reports.
Legal Implications
The case highlights the challenges of recovering stolen crypto assets and the potential for bad actors to exploit legal systems to launder stolen funds. Law firms and other entities must conduct thorough due diligence before filing claims on frozen assets.
Regulators are increasingly scrutinizing claims on frozen crypto assets, particularly those connected to known hacking groups. The Department of Justice has warned that attempting to claim stolen funds could result in criminal prosecution.
ZachXBT’s investigation has brought renewed attention to the issue of crypto fraud and the need for stronger safeguards in the legal system. The onchain investigator has a track record of exposing fraudulent schemes and helping recover stolen assets.
The frozen ETH remains in custody while authorities investigate Gerstein Harrow LLP’s claims. No charges have been filed yet, but the investigation is ongoing.
