According to blockchain analytics firm Elliptic, North Korean Lazaro Hacker has withdrawn another major crypto laundry business, earning $300 million from Crypto Exchange Bybit’s record $1.5 billion robbery.
A cybercriminal working for the North Korean regime swipes through funds two weeks ago in what became the biggest crypto hack in history. Despite global efforts to track and freeze stolen assets, at least 20% of the stolen money has disappeared.
The stolen funds are leaked through an elaborate laundry process, and experts warn that the money is likely to fund North Korea’s nuclear and military programs.
Source: Elliptic
Crypto analysts tracking movements say hackers are working non-stop to avoid detection using sophisticated tools. “Every minute is important for hackers trying to disrupt the money trail, and they’re very refined at what they’re doing,” said Tom Robinson, co-founder of Elliptic.
Bybit security breach allowed Lazarus to hijack funds
The Bibit attack occurred on February 21st, when Lazarus infiltrated one of Bibit’s suppliers. The hackers secretly changed the destinations of a massive 401,000 ETH transfers, and Bybit sent straight to the funds in his hand instead of his wallet.
Criminals exploited the loophole before the exchange could understand what happened. Bibit CEO Ben Zhou confirmed that the customer funds were not affected, but the company had to fill up the money stolen through investor loans.
The stolen assets worth $150,000 have now been frozen and seized. Source: Elliptic
“We are at war at Lazarus,” Ben said.
So far, 20 people have received a total of $4 million in compensation to help recover $40 million of stolen codes. The strategy relies on the fact that all transactions are recorded on a public blockchain, allowing you to track the movement of stolen money. But the problem is that Lazarus is good at washing codes.
Lazarus uses a crypto exchange to cash out stolen funds
Bibit and other exchanges are actively freezing stolen funds, but not all crypto companies work together. The exchange, exchange has been accused of allowing Lazarus to win more than $90 million. Bybit and other companies called Johann Roberts, the owner of the exchange, not acting quickly enough to block criminals.
However, Roberts denied the charges. In an email, he admitted that the exchange did not freeze the funds that were initially stolen, claiming that his company was in a long-standing dispute with Bybit and was not convinced that the funds were from Hack.
He says the exchange is now working together, but at the same time he criticised for more regulations, claiming it would compromise privacy and anonymity in the code.
The US and its allies have denounced dozens of crypto hacks over the years to use stolen funds to support an economy struck by state sanctions.
Lazarus previously focused on bank hacking, but over the past five years, crypto exchanges have become a major goal. Checkpoint cybersecurity expert Dr. Dorit Dole says North Korea has perfected the art of cybercrime.
“North Korea is a very closed system and a closed economy, creating a successful industry for hacking and laundry. They don’t care about the negative impression of cybercrime,” she said.
Bybit Hack is just the latest in a long list of Lazarus attacks, including the 2019 Upbit Hack ($41 million stolen), the 2020 Kucoin Hack ($275 million stolen, most recovery), the 2022 Ronin Bridge Attack ($600 million theft), and the 2023 Atomic Wallet Bleach ($1 million stolen).
The US has added Lazarus members to Cyber’s most wanted list, but the chances of arrest are only a small possibility unless they leave North Korea.
Despite international sanctions and law enforcement tracking every move they make, Lazarus is still separating and cashing some of the world’s biggest robbers.
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