FBI Accuses North Korean-Backed Hackers of Stealing $1.5 Billion in Crypto from Dubai-Based Firm

The Federal Bureau of Investigation (FBI) has accused North Korean-backed hackers of stealing a staggering $1.5 billion worth of cryptocurrency from a Dubai-based firm, Bybit.

According to the FBI, the theft was carried out by exploiting a vulnerability in Safe{Wallet}, a decentralized wallet service that is part of Bybit's custody offering. The attack allowed North Korean hackers to gain access to the wallets and steal the large sum of cryptocurrency.

The Largest Crypto Heist in History

The $1.5 billion theft is being hailed as one of the largest crypto hacks in history, with many experts describing it as a game-changer for the cryptocurrency industry.

Bybit's CEO, Sam Wang, has come under fire from some quarters for not taking adequate measures to prevent the hack. The company has since announced an investigation into the matter and is working closely with the FBI and other regulatory bodies to identify those responsible.

A Complex Web of Hackers

According to reports, the North Korean hackers behind the attack used a complex supply chain attack to exploit vulnerabilities in Safe{Wallet}. The attack involved manipulating the wallet's smart contracts and using them to drain the funds from the compromised wallets.

The FBI has confirmed that the attackers were able to use a combination of social engineering tactics and zero-day exploits to gain access to the wallets. This suggests that the hackers had a high level of sophistication and expertise.

A Wake-Up Call for the Crypto Industry

Experts are warning that this attack serves as a wake-up call for the crypto industry, highlighting the need for greater security measures and better regulation.

"This is a clear example of how vulnerable decentralized systems can be to attacks," said Alex Mizrahi, CEO of BitGo. "The lack of regulation in the space means that companies are often left to fend for themselves when it comes to cybersecurity."

Bybit and Safe{Wallet} at Odds Over Liability

The dispute between Bybit and Safe{Wallet} over who is liable for the hack has sparked a heated debate.

Safe{Wallet} has claimed that it was not responsible for the attack, arguing that it had taken adequate measures to prevent the breach. However, Bybit has argued that the wallet's vulnerabilities were a contributing factor to the hack.

Conclusion

The $1.5 billion theft is a sobering reminder of the risks and challenges facing the cryptocurrency industry. As experts warn, this attack could have far-reaching consequences for the space as a whole.