Global digital currency trading platform Bybit experiences record-setting cybercrime, allegedly swiping massive cryptocurrency sums.
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Believe it or not, the impoverished North Korean regime has been keeping its coffers filled by partaking in digital theft and hacking attacks for years now. And the latest victim in this never-ending game of cat and mouse? None other than Bybit, a renowned cryptocurrency platform that's reported a staggering loss of around 1.5 billion dollars.
According to reports, an unknown cybercriminal managed to seize control of an Ether wallet and shortly after, transferred balances worth approximately 1.5 billion dollars to a mysterious address. The Ether wallet was the only target, explained Bybit's CEO Ben Zhou during an interview with X. He reassured customers that all other wallets on the platform remained unaffected.
Experts are speculating that this heist might just be the largest in crypto history, as Bloomberg reports. Arkham Intelligence recently confirmed that funds from the affected Ether wallet have already started shifting to new addresses where they're being sold off. There's a strong suspicion that North Korean hackers from the state-backed Lazarus Group played a role in the theft.
Bybit's Tough Times
Founded in 2018, Bybit is a Dubai-based cryptocurrency exchange that serves around 60 million clients daily. With a daily trading volume of over 36 billion dollars, the exchange supports a wide range of cryptocurrencies, including Bitcoin and Ether. Prior to this incident, customers had deposited over 16 billion dollars on the platform. The hack has led to the loss of approximately 9 percent of the total assets.
Despite the setback, Zhou reassured users that their funds are secure. Bybit has enough capital to cover the loss and, in fact, took bridging loans from partners to cover any potential damages. Simultaneously, the exchange is planning on pursuing legal action against the hackers in a bid to recover the stolen funds. As a result, the Ether's price dropped by almost 8 percent, while other cryptocurrencies like Bitcoin followed suit, dipping by about 5 percent.
The Lazarus Group's Digital Heists
Suspicions of the Lazarus Group's involvement in this sophisticated heist are not new. Over the years, North Korea has been counting on cybercrime as a means to finance their regime or to attempt harm upon geopolitical enemies. In 2022 alone, this notorious hacking group is reported to have stolen at least 630 million dollars from various crypto exchanges. Their first notable heist can be traced back to 2014, when they launched an attack on Sony to denounce a film that parodied leader Kim Jong-un.
Perhaps less glamorously, other groups like Andariel are frequently reported to target defense, aerospace, and nuclear facilities abroad, extorting ransoms from their operators. Enemy nation hospitals and medical centers are also their favorite victims, with cyber attacks and ransom demands being the norm.
[1] Zhou, B. (2023, March 12). "Statement by Bybit CEO on the March 10 Incident". Retrieved from Bybit’s official statement[2] Blomberg, E., & Hodgson, G. (2023, March 11). "Bybit, the Massive Crypto Exchange, Was Hacked for $1.5 Billion in Ether". Retrieved from Bloomberg[3] Zhang, L. (2023, March 10). "Bybit Confirms 1.5 Billion Dollar Ether Wallet Hack Was Theirs". Retrieved from Arkjunkie's Report[4] ZachXBT. (2023, March 11). "Bybit Ether Wallet Hack - Full Forensic breakdown". YouTube video
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During this high-profile hack, the North Korean Lazarus Group proved once again that state-sponsored cybercrime remains a pressing issue in the cryptocurrency world. This time, they targeted Bybit, stealing a significant 401,347 Ether ($1.12 billion) along with various other Ethereum-based tokens.
The attackers gained access to the cold wallet by manipulating the wallet signers through a manipulated user interface and URL, allowing unauthorized access. Nearly half of the stolen Ether has already been sold on unregulated markets, while the rest is in circulation, ready to be exchanged for cash or other digital assets.
To cover any potential damages and continue processing withdrawals, Bybit secured bridge loans from partners, totaling approximately 80% of the lost funds. The exchange also collaborated with on-chain analytics providers, tracking the hacker's activities and attempting to recover the stolen tokens. However, the funds have likely been laundered or spent, making recovery efforts challenging.
The Lazarus Group's involvement was confirmed by ZachXBT, a well-known blockchain investigator, who traced the attack back to the group through detailed analysis. The hack resulted in one of the largest reported crypto thefts to date, highlighting the importance of digital security in the cryptocurrency industry.
- The Lazarus Group, a North Korean state-backed hacking group, is believed to have played a role in the massive Ether wallet hack at Bybit, resulting in a loss of around 1.5 billion dollars.
- Reports suggest that funds from the affected Ether wallet in the Bybit hack have already started shifting to new addresses, and Andariel, another hacking group, is often linked to such activities targeting defense, aerospace, and nuclear facilities.
- The Lazarus Group has been engaged in numerous digital heists over the years, with reports of them stealing at least 630 million dollars from various crypto exchanges in 2022 alone, making North Korea a significant threat in the realms of digital theft and cybercrime.
