The FBI has accused North Korean-backed hackers of executing one of the largest known cryptocurrency thefts, with approximately $1.5 billion worth of ethereum stolen from Bybit, a prominent Dubai-based cryptocurrency exchange.
This theft, which took place earlier this month, involves the notorious cybercrime groups TraderTraitor and the Lazarus Group, both linked to the North Korean regime.
According to the FBI’s public service announcement, the hackers infiltrated Bybit by distributing modified cryptocurrency trading applications, which contained malware designed to siphon off valuable assets.
The FBI asserts that the stolen funds are currently being moved through various blockchain addresses, with assets being converted to Bitcoin and other cryptocurrencies, likely in an effort to launder the money before eventual conversion to fiat currency.
While the North Korean government has not publicly addressed the theft or the accusations made by the FBI, the nation’s cyber activities have been a subject of growing concern. North Korea has been linked to several high-profile cyberattacks over the years, with estimates suggesting the country has stolen over $1.2 billion in digital assets since 2018.
These cybercrimes serve as a crucial financial lifeline for Pyongyang’s economy, which is severely strained by international sanctions and ongoing isolation, particularly due to the pandemic.
In response to the FBI’s announcement, Bybit CEO Ben Zhou acknowledged the incident and highlighted a reward program offering up to $140 million for those who can assist in tracking and recovering the stolen cryptocurrency.
Zhou also explained that the attack occurred when a routine transfer of ethereum from Bybit’s “cold” or offline wallet was compromised and redirected to an unknown address.
Blockchain analysis firm Certik has described the incident as the largest breach in blockchain history, sending shockwaves through the cryptocurrency market. Following the breach, cryptocurrency prices have seen a noticeable decline, with Bitcoin dropping from its high of over $100,000 a month ago to just over $82,000.
This theft is yet another example of the growing threats to the digital asset space, underscoring the need for enhanced security measures in cryptocurrency exchanges and the broader blockchain ecosystem.
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