North Korean Hackers Launder $300 Million from ByBit’s $1.5 Billion Crypto Heist
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Massive Crypto Heist Linked to North Korea
Hackers linked to North Korea’s notorious Lazarus Group have successfully laundered at least $300 million from a record-breaking $1.5 billion cryptocurrency heist targeting ByBit, a leading crypto exchange, according to blockchain analysts.
The cybercriminals breached ByBit’s systems two weeks ago in what is being described as one of the largest cryptocurrency thefts in history. The group, long accused of funding Pyongyang’s military and nuclear programs through cyberattacks, has been working aggressively to obscure and move the stolen assets beyond the reach of law enforcement.
Read More; North Korean Hackers Accused of $1.5 Billion Crypto Heist on Bybit Exchange
Tracking the Stolen Funds
Investigators and cybersecurity experts have been tracking the movement of the stolen digital assets in an effort to block their conversion into fiat currency. However, experts warn that recovering the full amount remains unlikely.
“Every minute counts for these hackers, who are highly skilled at obfuscating the money trail,” said Dr. Tom Robinson, co-founder of blockchain intelligence firm Elliptic. “They operate in shifts, using automated tools to efficiently launder funds.”
ByBit has acknowledged that nearly 20% of the stolen funds—approximately $300 million—have already disappeared into anonymous blockchain wallets, making recovery highly improbable.
ByBit Fights Back: ‘War on Lazarus’
ByBit’s CEO, Ben Zhou, has assured customers that their funds remain secure, as the company has replenished the stolen amount through investor-backed loans.
“We are waging war on Lazarus,” Zhou declared, announcing a bounty program to reward individuals who help track and freeze the stolen crypto.
So far, the initiative has paid out $4 million in rewards to 20 individuals, leading to the identification and blocking of $40 million worth of stolen funds.
Despite these efforts, authorities remain pessimistic about recovering the majority of the loot.
North Korea’s Growing Cyber Threat
The U.S. and its allies have repeatedly accused North Korea of conducting cyberattacks to evade international sanctions and finance its weapons programs.
The Lazarus Group, believed to be operating under North Korea’s intelligence agencies, has become increasingly adept at targeting cryptocurrency exchanges, exploiting security vulnerabilities.
“North Korea has built a cybercriminal empire to fund its regime,” said Dr. Dorit Dor, a cybersecurity expert at Check Point. “They have no regard for legal or reputational consequences.”
The Lazarus Group has been responsible for some of the biggest crypto heists in history, including:
- $41 million hack on UpBit (2019)
- $275 million attack on KuCoin (2020) (with most funds recovered)
- $600 million Ronin Bridge hack (2022)
- $100 million theft from Atomic Wallet (2023)
Complicity of Cryptocurrency Exchanges
One of the biggest challenges in stopping such cyber heists is the involvement of certain crypto exchanges.
ByBit has accused eXch, a cryptocurrency exchange, of allowing over $90 million of the stolen funds to be laundered through its platform.
Johann Roberts, the elusive owner of eXch, initially refused to block the funds, citing a dispute with ByBit and uncertainty over the origin of the assets. However, he later stated that his company is now cooperating with investigators.
Despite overwhelming evidence pointing to North Korean involvement, Pyongyang continues to deny any ties to the Lazarus Group. The U.S. government has placed several North Korean hackers on its Cyber Most Wanted list, but given the secrecy of the regime, arrests remain highly unlikely.
Conclusion
The ByBit hack underscores the growing cybersecurity crisis in the cryptocurrency industry, with North Korean hackers continuing to exploit security loopholes. As global authorities and exchanges work to tighten anti-money laundering (AML) measures, the battle against cyber heists remains an ongoing challenge.
Will ByBit’s aggressive response slow down Lazarus, or will this be just another unsolved mega-heist?
