North Korean hackers, believed to be part of the Lazarus Group, have cashed out at least $300 million from a record-breaking $1.5 billion cryptocurrency theft from the exchange ByBit, BBC reported.
This heist, which took place two weeks ago, has sparked a relentless effort to trace and block the hackers from converting their stolen digital assets into cash.
Experts suggest that the hackers operate almost continuously, possibly directing the funds to support the North Korean regime’s military initiatives. Dr Tom Robinson, co-founder of crypto investigation firm Elliptic, noted their advanced methods in laundering cryptocurrency, indicating that they likely have dedicated teams working around the clock.
ByBit has said that approximately 20% of the stolen funds have “gone dark,” making recovery unlikely. The US and its allies have accused North Korea of conducting numerous hacks to finance its military and nuclear programmes.
The hack occurred when the Lazarus Group infiltrated one of ByBit’s suppliers and redirected a transfer of 401,000 Ethereum coins to their own digital wallet.
ByBit’s CEO, Ben Zhou, reassured clients that their funds remain secure and has initiated a bounty program to encourage the public to help trace the stolen assets.
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ByBit CEO Ben Zhou reassured customers that their funds remain secure following the recent hack. The company has replenished the stolen cryptocurrency through investor loans and is now “waging war on Lazarus.”
ByBit’s Lazarus Bounty programme invited the public to help trace and freeze the stolen assets, leveraging the transparency of blockchain technology to track transactions linked to the Lazarus Group.
So far, 20 individuals have received over $4 million in rewards for identifying $40 million of the stolen funds and alerting crypto firms to block those transfers. However, experts remain skeptical about recovering the remaining assets due to North Korea’s specialized capabilities in hacking and money laundering.
Dr Dorit Dor from Check Point noted that North Korea operates a closed economy where cybercrime is entrenched, with little regard for the negative perceptions associated with it.
