Emmanuel OchayiThe FBI has accused North Korea of stealing $1.5 billion in digital assets from the cryptocurrency exchange Bybit, making it the largest crypto theft in history. The agency identified the hacking group Lazarus Group, also known as TraderTraitor, as responsible for the attack.
“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.
Join our WhatsApp ChannelThe stolen amount, although losing some value due to market fluctuations, still surpassed the previous record of $1 billion taken by Saddam Hussein from Iraq’s central bank before the 2003 war.
READ ALSO: Bybit Hack: What Happens When Crypto Platforms Get Hacked?
FBI Warns of Further Laundering of Stolen Assets
According to the FBI, the hackers are expected to launder the stolen assets and eventually convert them into fiat currency. Fiat currency refers to government-backed money not tied to commodities like gold.
“It is expected these assets will be further laundered and eventually converted to fiat currency,” the agency said.
North Korean-linked hackers reportedly stole over $1.3 billion in cryptocurrency in 2024, a record amount according to blockchain analysis firm Chainalysis. The report noted that these thefts occurred across 47 incidents, nearly double the $660 million stolen in 2023.
FBI Highlights North Korea’s Advanced Cybercrime Tactics
Cybersecurity experts warn that North Korean hackers have refined their methods, using malware, social engineering, and cryptocurrency theft to fund state operations. Chainalysis noted in its report: “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.”
UN officials monitoring sanctions on North Korea believe that funds from suspected cyber-attacks between 2017 and 2023 have contributed to the country’s military and nuclear programs.
Bybit Responds with Bounty Offer
Bybit has responded to the heist by offering a bounty for information leading to the recovery of the stolen assets. The exchange has also set up an online system to track and freeze the stolen funds.
Ben Zhou, CEO of Bybit, emphasized transparency in tackling 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.
FBI Traces Lazarus Group’s Cyber Attacks
The Lazarus Group has been active for over a decade. It gained international attention in 2014 when it was accused of hacking Sony Pictures in response to “The Interview,” a film that mocked North Korean leader Kim Jong Un.
North Korea’s cyber-warfare program dates back to the 1990s and has grown into Bureau 121, a cyber unit with around 6,000 operatives operating from several countries. A 2020 US military report described the group as one of the most dangerous state-sponsored hacking units in the world.
The FBI continues to investigate the Bybit heist and urges exchanges and financial institutions to strengthen their security measures against future cyber threats.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
