North Korea Accused of Historic $1.5 Billion Bybit Cryptocurrency Heist
The FBI has identified North Korea as the perpetrator behind a massive theft of approximately $1.5 billion in virtual assets from ByBit, a cryptocurrency exchange based in Dubai. This incident is being dubbed the largest heist in history, eclipsing the previous record of $1 billion stolen by former Iraqi dictator Saddam Hussein from the central bank before the 2003 war. The incident highlights North Korea’s growing capabilities in cybercrime.
In a statement issued on Wednesday, the FBI described this form of online criminal activity as “TraderTraitor.” Authorities warned that the stolen virtual assets, taken from ByBit, are likely to be transformed into traditional currency. “TraderTraitor actors are proceeding rapidly, having already converted some of the stolen assets into bitcoin and other cryptocurrencies, distributing them across thousands of addresses on multiple blockchains,” the FBI noted.
The agency projected that these assets would go through further laundering processes before being exchanged for fiat currency governments’ traditional money not linked to commodities like gold. North Korea has been associated with a sophisticated cybercrime group, known as the Lazarus Group, which has been linked to high-profile thefts. Proceeds from these cybercrimes are suspected to finance the regime’s nuclear and missile development programs.
In a report published by blockchain analysis firm Chainalysis, it was noted that North Korean hackers stole over $1.3 billion in cryptocurrency throughout 2024, marking a record increase from $660 million in 2023. Chainalysis underscored the hackers’ notorious reputation for their advanced techniques, including malware, social engineering, and cryptocurrency theft to support state operations and evade international sanctions.
United Nations officials monitoring sanctions against North Korea have indicated that revenues from numerous cyberattacks conducted from 2017 through 2023 have likely been used to enhance the country’s nuclear capabilities. Despite the challenges posed by international sanctions, the COVID-19 pandemic, and natural disasters, Kim Jong-un’s government has made significant strides in developing its military capabilities, including the ability to strike distant targets like the US mainland.
Cybercrime is not North Korea’s sole method for acquiring foreign currency. The regime has also dispatched weapons, troops, and ammunition in support of Russia’s invasion of Ukraine, receiving financial resources and technology in return. Reports from South Korea’s intelligence agency revealed that North Korea has recently redeployed additional soldiers to Russia, particularly in the Kursk region, where it was previously claimed that approximately 11,000 North Korean troops were present.
Meanwhile, North Korea has recently reopened its borders to a limited number of international tourists, including travelers from the UK, France, and Australia, for the first time since the pandemic. The regime hopes to attract more tourists, particularly from Russia and China, although the US has prohibited its citizens from entering North Korea since 2017.
The target of the recent cyber theft, ByBit, announced that hackers gained access to an Ethereum wallet and redirected the funds to an unidentified address. The exchange serves over 60 million customers worldwide and offers a variety of cryptocurrencies, such as bitcoin and ether. In light of this significant breach, ByBit has called upon top cybersecurity experts to assist in recovering the lost $1.5 billion.
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