The FBI has accused North Korean-backed hackers of stealing $1.5 billion in cryptocurrency from Bybit, a Dubai-based exchange. The hackers, known as TraderTraitor and the Lazarus Group, utilized malware-infused trading apps to execute one of the largest known thefts in crypto history. The incident raises concerns over regulatory scrutiny and cybersecurity, affecting market prices and investor confidence.
The Federal Bureau of Investigation (FBI) has attributed one of the most significant thefts of cryptocurrency in history to hackers associated with North Korea, with approximately $1.5 billion in Ethereum stolen from Bybit, a prominent Dubai-based cryptocurrency exchange. The FBI identifies these cybercriminals with the monikers TraderTraitor and the Lazarus Group, renowned for their involvement in previous high-profile hacks. The manner in which the theft was executed involved the use of maliciously modified cryptocurrency trading applications designed to facilitate these crimes.
In an online public service announcement, the FBI expressed its conviction that the North Korean hackers were behind the theft. The FBI’s announcement also revealed that the TraderTraitor group is moving swiftly, converting stolen assets into Bitcoin and other cryptocurrencies that are being dispersed across numerous addresses on various blockchains. These actions are anticipated to enable further laundering of the assets, potentially leading them to be exchanged for traditional currency.
Despite the allegations, North Korean state media has not recognized the theft or the FBI’s claims. The mission of North Korea at the United Nations in Geneva did not respond immediately to inquiries regarding the situation from The Associated Press. Reports indicate that North Korea has pilfered approximately $1.2 billion in cryptocurrency and digital assets over the past five years to sustain its economy and fund its nuclear initiatives amid stringent U.N. sanctions.
A United Nations experts panel stated that it is scrutinizing 58 cyberattacks attributed to North Korea from 2017 to 2023, culminating in the theft of about $3 billion, allegedly intended to finance the country’s development of weapons of mass destruction. Ben Zhou, co-founder and CEO of Bybit, acknowledged the FBI’s announcement via a post on the social media platform X, linking to a website that offers $140 million in rewards for tracking the stolen cryptocurrency.
Bybit disclosed that a routine transfer of Ethereum from a “cold” offline wallet was compromised, allowing the attackers to reroute the cryptocurrency to an unidentified address. Manuel Villegas, an analyst at Julius Baer, indicated that the hack was sophisticated, employing a deceptive interface that mimicked the trusted platform. The blockchain analytics firm Certik has characterized the incident as “the largest breach” in the history of blockchain transactions.
In the aftermath of this breach, the overall cryptocurrency market has experienced a downturn, with investors reacting to the security panic ignited by the hack. Bitcoin, the industry leader, was trading at over $82,000 per coin on Thursday, down from a peak of more than $100,000 just a month prior. Villegas noted that the incident poses significant challenges for Bybit’s clientele and is likely to invoke heightened regulatory scrutiny.
The FBI has linked North Korean hackers to a monumental cryptocurrency theft involving approximately $1.5 billion from the exchange Bybit. The theft, executed through sophisticated hacking techniques, raises concerns about cybersecurity and regulatory implications in the crypto market. With North Korea’s history of funding its military programs through cyber theft, this incident underscores the persistent threat that international hacking groups pose to the global economy.
Original Source: apnews.com
