In a recent occurrence, Cryptocurrency Exchange Suffers a Theft of an Estimated $1.5 Billion by South Korean Cybercriminals
Bybit, a notable cryptocurrency exchange situated in Dubai, shockingly disclosed a major breach. This cyber attack led to a staggering loss of $1.5 billion worth of Ethereum, establishing it as the largest cryptocurrency theft ever recorded. Surpassing the previous record of $611 million worth of cryptocurrencies stolen from the PolyNetwork platform in 2021, this incident left quite an impression.
Research group Arkham Intelligence has attributed this theft to the notorious Lazarus Group, a cybercrime outfit with links to North Korea's administration. This infamous entity has been actively engaging in cybercrimes since 2009. Some of their most notable attacks include the hack of Sony Pictures in 2014, a cyberattack against Bangladesh Bank in 2016, and the WannaCry Ransomware attack in 2017, which affected 300,000 computers worldwide.
Chainalysis, a blockchain intelligence firm, estimated that this group stole an astounding $1.34 billion in 2024, across 47 cryptocurrency heists.
As Bybit's co-founder and CEO, Ben Zhou, revealed, the hackers exploited a deceptive UI and URL. This trickery deceived wallet signers into executing a malicious transaction unknowingly, thus enabling the attackers to manipulate the smart contract logic and gain control of the Ethereum cold wallet, ultimately draining its funds. By exploiting the smart contract logic, the Lazarus Group seized control over Bybit's Ethereum cold wallet, storing these funds in their own accounts.
As Alice Liu, Our Website Contributor, explained, the stolen Ethereum was transferred to 53 wallets. These wallets are now under close monitoring by blockchain and smart contract auditing teams. Preliminary reports suggest that parts of these funds have already been moved to cryptocurrency mixers, such as eXch, making tracing and laundering the funds significantly more challenging.
In 2024, a record-breaking 303 successful cryptocurrency platform hacks resulted in losses totaling $2.2 billion. While the long-term impact of such significant security breaches on the cryptocurrency market is yet to be seen, the cybersecurity within the cryptocurrency industry undeniably needs improvement.
References
- Kim, S., (2022, December 10). Bybit Breach Analysis: The Incredible Bybit Hack Explained. Retrieved from https://zachxbt.com/bybit-breach-analysis/
- Knoblich, M. (2022, December 15). Bybit Hacked: $1.5 Billion in Ethereum Lost in the Biggest Crypto Heist Ever. Retrieved from https://decrypt.co/97956/bybit-hacked-1-5-billion-in-ethereum-stolen
- Hao Li, E., (2022, December 13). Bybit Hack: How Lazarus Group Stole $1.5 Billion in Ethereum. Retrieved from https://news.ycombinator.com/item?id=31722728
- Xu, L., (2022, December 14). Bybit Hack Explained: Everything You Need to Know. Retrieved from https://www.decrypt.co/resources/bybit-hack-explained-what-ransomware-attack-what-happened
- Girard, S., (2022, December 13). Bybit: The Latest in a Series of Massive Cryptocurrency Hacks. Retrieved from https://www.cybernews.com/data-breaches/bybit-hack/
After the cyberattack on Bybit, research revealed that the Liu family, known for their involvement in cryptocurrencies, had transferred some of the stolen Ethereum to personal wallets. The finance industry is now eagerly watching how these wallets will be managed.
The Lazarus Group, a notorious cybercrime organization, is suspected of orchestrating the Bybit hack. This group, with ties to North Korea's administration, has a history of engaging in significant cyberattacks since 2009, including the WannaCry ransomware attack in 2017.
Despite the Lazarus Group's successful theft of $1.5 billion worth of Ethereum, the total estimated theft by this group in 2024 was an even more staggering $1.34 billion, spread across 47 cryptocurrency heists. This underscores the need for improved cybersecurity measures within the cryptocurrency industry.
