The United States Federal Bureau of Investigation (FBI) has accused North Korea of orchestrating a record-breaking $1.5 billion cryptocurrency heist, marking the largest theft of its kind in history.
Bybit Hack: How North Korea Pulled Off the Heist
According to an official statement released on Wednesday, the FBI claims that the cybercriminal organization known as TraderTraitor, also referred to as the Lazarus Group, was responsible for hacking Dubai-based cryptocurrency exchange Bybit.
Bybit had earlier reported a loss of 400,000 Ethereum (ETH), which hackers stole after exploiting security vulnerabilities during a transaction. The stolen digital assets were then transferred to an undisclosed address before being funneled through multiple blockchains.
“The Democratic People’s Republic of Korea (DPRK) was responsible for the theft of approximately $1.5 billion in virtual assets from Bybit,” the FBI stated in its public advisory.
The agency further warned that the stolen cryptocurrency is being rapidly moved across different blockchain networks and converted into Bitcoin and other digital currencies. The funds are expected to be laundered and eventually exchanged for fiat currency.
Lazarus Group’s Cyber Attacks: A Decade-Long Threat
The Lazarus Group first gained international attention in 2014 when it allegedly hacked Sony Pictures in retaliation for The Interview, a Hollywood film that satirized North Korean leader Kim Jong Un. Since then, the group has been linked to multiple high-profile cyber heists, including:
- 2022: A $620 million hack of the Ronin Network, which was previously the largest cryptocurrency theft in history.
- December 2023: A cyberattack on Japan-based DMM Bitcoin, where hackers reportedly stole over $300 million.
North Korea’s Expanding Cyber Warfare Operations
North Korea’s cyber warfare activities date back to at least the mid-1990s. A 2020 U.S. military report revealed that the country had developed a 6,000-strong cyber unit, known as Bureau 121, which operates from locations in China and Russia.
A United Nations (UN) panel investigating North Korea’s sanctions evasion estimated that Pyongyang has stolen over $3 billion in cryptocurrency since 2017. According to the panel, these stolen funds are believed to finance North Korea’s nuclear weapons program.
The hacking operations are reportedly overseen by North Korea’s Reconnaissance General Bureau, its primary intelligence agency.
A Growing Threat to Global Security
Despite international sanctions and repeated warnings from Western intelligence agencies, North Korea continues to expand its cyber capabilities, posing a serious threat to global financial institutions and security networks.
With the Bybit hack now marking the largest crypto theft ever, cybersecurity experts warn that future attacks may become even more sophisticated and harder to prevent.