The United States Federal Bureau of Investigation (FBI) has accused North Korea of carrying out the biggest cryptocurrency theft in history, stealing approximately $1.5bn in digital assets from the crypto exchange Bybit last week.
In a public service announcement released on Wednesday, the FBI stated, “(North Korea) was responsible for the theft of approximately $1.5 billion USD in virtual assets from cryptocurrency exchange, Bybit.” The agency identified the perpetrators as TraderTraitor, a cybercriminal group also known as the Lazarus Group.
The FBI further explained that the hackers are already in the process of converting the stolen funds, saying they “have converted some of the stolen assets to Bitcoin and other virtual assets dispersed across thousands of addresses on multiple blockchains.” The agency warned that “it is expected these assets will be further laundered and eventually converted to fiat currency.”
The Lazarus Group has been notorious for high-profile cyberattacks over the years. It first gained international attention in 2014 when it was accused of hacking into Sony Pictures Entertainment as retaliation for The Interview, a Hollywood comedy that mocked North Korean leader Kim Jong Un. The cyberattack resulted in the leak of confidential corporate data, internal emails, and unreleased films, causing significant financial and reputational damage to the company.
North Korea’s involvement in cyber warfare dates back to at least the mid-1990s, but its operations have since grown into a highly sophisticated unit known as Bureau 121. According to a 2020 report by the U.S. military, this elite cyber division now consists of over 6,000 operatives stationed across multiple countries, including China, Russia, and India.
The latest crypto heist adds to North Korea’s history of using cybercrime to finance its economy and evade international sanctions. Reports indicate that the country has been heavily reliant on hacking activities to fund its weapons programs and sustain its isolated regime. In previous years, the Lazarus Group has been linked to several other major cybercrimes, including the 2017 WannaCry ransomware attack, the 2016 Bangladesh Bank heist, and multiple cryptocurrency thefts targeting decentralized finance (DeFi) platforms and exchanges.
As investigations into the Bybit hack continue, the FBI has urged cryptocurrency firms and blockchain service providers to remain vigilant and strengthen their security measures to prevent further cyberattacks. The agency also advised crypto investors to be cautious when dealing with suspicious transactions, as North Korean-affiliated hackers continue to refine their methods to exploit vulnerabilities in the financial sector.
AFP
