FBI Accuses North Korea of Largest Crypto Hack in History

The US Federal Bureau of Investigation (FBI) has made a shocking accusation against the Democratic People's Republic of Korea (North Korea), alleging that it is responsible for the largest cryptocurrency hack in history.

According to the FBI, North Korea is behind the theft of approximately $1.5 billion in virtual assets from the Dubai-based Bybit cryptocurrency exchange. The heist, which was reported last week, has left Bybit's users reeling and the global cryptocurrency market on high alert.

The FBI claims that the attackers used a malicious tool called 'TraderTraitor', a set of compromised cryptocurrency applications designed to trick victims into installing malware under the guise of job offers. Once installed, the malware allows hackers to gain access to financial systems and steal funds.

The agency alleged that the hackers quickly began converting portions of the stolen assets into Bitcoin and other cryptocurrencies, dispersing them across thousands of addresses on multiple blockchains. The FBI warned that the perpetrators are expected to later launder the funds and convert them into fiat currency in an effort to evade detection.

Bybit: A Victim of Sophisticated Attack

Bybit, an exchange serving over 60 million users, reported that the breach occurred during a routine transfer between digital wallets. The hackers exploited the process of transferring funds from an offline storage system to a hot wallet used for trading, stealing around 401,000 Ethereum tokens worth $1.5 billion and funneling them to an unknown address.

Bybit stated that the hack was a "sophisticated attack that masked the signing interface, displaying the correct address while altering the underlying smart contract logic." The company warned its users that they had received more than 350,000 withdrawal requests, which could lead to delays in processing. In an effort to recover the stolen funds, Bybit called on cybersecurity and blockchain forensics experts to lend their expertise.

The company also offered a 10% reward to anyone who can help recover the stolen funds, demonstrating its commitment to transparency and cooperation with law enforcement agencies.

A Long-Standing Allegation

Western intelligence agencies have long accused North Korea of using cyberattacks to fund its weapons programs and evade international sanctions. The Lazarus Group, one of the alleged North Korean hacking units, has been linked to previous cryptocurrency heists, including the $620 million Ronin Network hack in 2022.

While North Korea has yet to comment on the FBI's allegations, it has previously denied accusations that it is involved in crypto theft, suggesting that these claims are aimed at tarnishing the country's image. However, with this latest accusation, the US government is pushing back against North Korea's denials and emphasizing its commitment to holding accountable those responsible for these cyberattacks.

Stay Tuned

This story is still developing, and we will continue to provide updates as more information becomes available.