What is the algorithm used by LM for Windows 2000 SAM?

LAN Manager (LM) hashes are legacy password hashing methods used in older Windows systems (including Windows 2000 for backward compatibility). LM hashing works by:

Converting the password to uppercase.

Padding or truncating it to 14 characters.

Splitting it into two 7-character halves.

Using each half as a DES key to encrypt a known constant ("KGS!@#$%").

Therefore, LM hashing uses the DES (Data Encryption Standard) algorithm.

From CEH v13 Official Courseware:

Module 6: Malware Threats → Password Storage and LM Hash Structure