Recovery is challenging after hackers laundered $300 million from a historic North Korea’s $1.5 billion crypto crime. Two weeks ago, the Lazarus Group used sophisticated methods to modify Waller addresses to gain access to the ByBit cryptocurrency exchange and steal digital assets.
Authorities and cybersecurity specialists have been attempting to monitor and prevent their attempts to cash out the stolen money ever since. The criminals known as the Lazarus Group work around the clock, deploying sophisticated tools to erase their financial footprints. Dr Tom Robinson, the company’s co-founder, says these hackers operate in shifts, ensuring near continuous laundering of illicit funds.
He believes their goal is to finance North Korea’s military development, making their activities a national security concern. ByBit confirmed that 20% of the stolen cryptocurrency has already gone dark, meaning it has been successfully laundered.
Investigators are monitoring blockchain transactions to spot questionable transfers to prevent more money from disappearing. Ben Yhou, CEO of ByBit, believes that client assets are secure despite the company’s loan of new money to cover the lost amount.
Yhou has pledged to combat hackers and started the Lazarus Bounty program to track and freeze stolen funds. The bounty program has rewarded 20 participants $4 million for flagging $40 million in illicit transactions.
When criminals try to convert stolen cryptocurrency into traditional money, exchanges can freeze those funds if they suspect illegal activity. Despite some successes, security experts warn that North Korea’s hackers remain among the best at crypto laundering.
Some companies refuse to cooperate, complicating recovery efforts. The controversial crypto platforms each allegedly facilitated the laundering of $90 million but initially denied involvement. The owner of eXch, Johann Roberts, admitted his company failed to block transactions but now claims to be assisting investigators.
North Korea denies any connection to the Lazarus Group, but US officials believe the regime relies on cybercrime to fund its operations. North Korea’s $1.5 billion crypto crime highlights the growing threat of state-sponsored hacking and the vulnerabilities in the cryptocurrency industry.
