The US Federal Bureau of Investigation (FBI) has accused North Korea of orchestrating the theft of $1.5 billion worth of digital assets from cryptocurrency exchange Bybit last week, marking the largest crypto heist in history.
The FBI identified a group called TraderTraitor, also known as the Lazarus Group, as responsible for the theft.
“TraderTraitor actors are proceeding rapidly and have converted some of the stolen assets to bitcoin and other virtual assets dispersed across thousands of addresses on multiple blockchains,” the FBI stated.
The stolen amount reportedly lost some of its value but exceeded the previous record of $1 billion stolen by Saddam Hussein from Iraq’s central bank before the 2003 war, highlighting North Korea’s growing expertise in cybercrime.
Fiat currency
The bureau added that the stolen assets would likely be further laundered and eventually converted to fiat currency, a government-backed currency not tied to commodities like gold.
“It is expected these assets will be further laundered and eventually converted to fiat currency,” the FBI added.
Hackers linked to North Korea stole more than $1.3 billion in cryptocurrency in 2024, a record amount according to a report published in late December by blockchain analysis firm Chainalysis. The thefts were spread out over 47 incidents, a dramatic increase from the $660 million stolen in 2023.
“Hackers linked to North Korea have become notorious for their sophisticated and relentless tradecraft, often employing advanced malware, social engineering, and cryptocurrency theft to fund state-sponsored operations and circumvent international sanctions,” Chainalysis said in its report.
What you should know
UN officials monitoring sanctions imposed on North Korea believe that the proceeds from dozens of suspected cyber-attacks carried out by the regime between 2017 and 2023 contributed to their funding.
- In response to the heist, Bybit has offered a bounty for those who help recover the losses, setting up an online system to trace and freeze stolen funds. Chief executive Ben Zhou emphasized the importance of transparency in combating cybercrime.
“We are taking a stand to ensure that every transaction is visible and every hacker is held accountable. Our multi-pronged offensive is a clear message: if you steal, you will be found, and justice will be swift,” Zhou said.
- The Lazarus Group gained notoriety a decade ago when it was accused of hacking into Sony Pictures in retaliation for “The Interview,” a film that mocked North Korean leader Kim Jong Un.
North Korea’s cyber-warfare program dates back to at least the mid-1990s and has since grown to a 6,000-strong cyber-warfare unit known as Bureau 121, operating from several countries, according to a 2020 US military report.
