Islamabad, Feb 27: The United States Federal Bureau of Investigation (FBI) has accused North Korea of orchestrating one of the largest cryptocurrency thefts in history, valued at approximately $1.5 billion.
In a statement released on Wednesday, the FBI attributed the cyberattack to the infamous Lazarus Group, also known as TraderTraitor. The group allegedly targeted the Dubai-based cryptocurrency exchange Bybit, exploiting security vulnerabilities to siphon off digital assets.
Bybit had previously reported a loss of 400,000 Ethereum, which was illicitly transferred after hackers manipulated security loopholes during a transaction. The stolen funds were then routed to undisclosed blockchain addresses.
“The Democratic People’s Republic of Korea (DPRK) was responsible for the theft of approximately $1.5 billion in virtual assets from cryptocurrency exchange Bybit,” the FBI stated in its advisory. The agency further noted that the stolen funds were being laundered through multiple blockchains and converted into Bitcoin and other cryptocurrencies. Experts believe that these digital assets will eventually be converted into fiat currency to finance illicit activities.
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Lazarus Group’s History of Cyber Attacks
The Lazarus Group gained global notoriety nearly a decade ago when it was linked to the 2014 cyberattack on Sony Pictures. The attack was allegedly in retaliation for “The Interview,” a satirical film mocking North Korean leader Kim Jong Un.
Since then, the group has been tied to several large-scale cyber heists. In 2022, it was accused of orchestrating the $620 million hack of the Ronin Network, which at the time held the record for the largest cryptocurrency theft. More recently, in December 2023, Lazarus Group was implicated in a cyberattack on Japan-based DMM Bitcoin, stealing assets worth over $300 million.
North Korea’s cyber warfare operations date back to the mid-1990s. A 2020 U.S. military report disclosed that Pyongyang operates a 6,000-member cyber unit, Bureau 121, with operatives based in China and Russia.
A United Nations investigation estimated that North Korea has stolen over $3 billion in cryptocurrency since 2017. These funds are believed to be funneled into the country’s nuclear weapons program.
Despite international sanctions and repeated warnings from global intelligence agencies, North Korea continues to expand its cyber capabilities, posing a significant risk to global financial institutions and security frameworks.
