FBI Uncovers North Korea’s Growing Crypto Crimes After Bybit Breach

• North Korea’s Lazarus Group stole $1.5B in Ethereum from Bybit, fueling concerns over crypto security and state-sponsored cybercrime.
• Lazarus Group’s crypto heists, exceeding $3B since 2017, help North Korea evade sanctions and fund its weapons program.
• The FBI’s undercover operation exposed crypto market manipulation, reinforcing calls for stricter regulations.

A major security breach was suffered by Bybit, a virtual currency exchange company situated in Dubai. The hackers stole $1.5 billion in Ethereum, probably making it the biggest crypto heist of all time. According to reports, the attack was made by Lazarus Group, a cyber-crime gang associated with North Korea.

During the course of a transaction, hackers exploited existing security loopholes and thereafter transferred the amounts to unidentified addresses. Authorities confirm that the stolen assets are being converted to Bitcoin and other cryptocurrencies, making recovery efforts challenging. 

Lazarus Group’s Role in Global Crypto Theft

The Lazarus Group has a long history of cyberattacks. It first gained global attention for hacking Sony Pictures in 2014. The group was also responsible for the 2022 Ronin Network attack, stealing $620 million in Ethereum and USD Coin.

Besides, the U.S. and Japan recently linked them to the $300 million theft from DMM Bitcoin. These cyberattacks are reportedly directed by North Korea’s Reconnaissance General Bureau. Their operations support the country’s nuclear weapons program, making them a significant threat.

Over time, North Korea’s cyber-warfare unit Bureau 121 has grown. Today, it consists of 6,000 highly trained hackers operating from different locations. Their knowledge of laundering stolen cryptocurrency makes it challenging for authorities to trace and recover stolen assets. In addition, a UN panel estimates that North Korea has stolen over $3 billion in crypto since 2017. Stolen assets provide slush funds for the regime’s economic sanctions and weapons development.

The Growing Threat of Crypto Market Manipulation

Beyond direct cyber theft, crypto market manipulation is another rising concern. The FBI recently arrested Aleksei Andriunin, founder of Gotbit, a crypto hedge fund and market maker. Andriunin, along with two associates, faced charges of market manipulation and wire fraud conspiracy. U.S. authorities accused Gotbit of executing wash trades to artificially inflate trading volumes. Such practices mislead investors and undermine market integrity.

Additionally, these fraudulent acts were made public by the FBI’s undercover operation. To capture dishonest players in cryptocurrency exchanges, the organization developed a trap token called NexFundAI (NEXF). Consequently, the inquiry discovered illicit trading methods intended to manipulate CoinMarketCap rankings and exchange listings.