Lummis: CLARITY Act Closes Gaps North Korea's Lazarus Group Used to Steal $6.75 Billion

Senator Cynthia Lummis (R-WY) has stated that the CLARITY Act closes illicit-finance gaps exploited by groups like North Korea’s Lazarus Group. The bill grants the U.S. Treasury Department and crypto exchanges new authority to freeze suspicious transactions before funds move overseas.

Lummis, a lead sponsor of the CLARITY Act, highlighted Sections 303 and 305 as key provisions targeting illicit funds. Section 303 empowers the Treasury to designate foreign jurisdictions or financial institutions as a ‘primary money laundering concern’ for digital asset activity, requiring exchanges and stablecoin issuers to restrict transfers. Section 305 allows exchange operators and stablecoin issuers to place a 30-day hold on transactions suspected of involving illicit activity, extendable to 180 days with law enforcement request. Firms acting in good faith receive a safe harbor from civil liability.

Lazarus Group-linked hackers stole approximately $643 million in the first half of 2026, accounting for two-thirds of the $972 million in crypto hacking losses worldwide across 207 incidents. Major exploits included a $285 million theft from Solana-based Drift Protocol and a $292 million compromise of the Layerzero bridge connecting KelpDAO to Ethereum. The group’s cumulative haul since 2019 stands at $6.75 billion, with the largest single exploit being the February 2025 attack on Bybit, which netted $1.5 billion in ethereum. Lazarus Group has also shifted tactics, using social-engineering techniques like the Mach-O Man campaign to target crypto executives.

The CLARITY Act faces a tight timeline, needing 60 Senate votes and seven Democratic crossovers before the August recess. Galaxy Research has lowered its estimate of the bill becoming law in 2026 to 30%.

Source: https://news.bitcoin.com/lummis-clarity-act-lazarus-group-treasury-freeze/