In a significant crackdown, the U.S. government has initiated legal action to seize over $2.67 million in cryptocurrency assets stolen by North Korea’s Lazarus hacking group, known for its numerous cyber heists in the crypto industry.
Details of the Asset Seizure
On October 4, 2024, the United States filed two legal complaints aiming to recover stolen digital assets linked to the North Korean hackers. One complaint seeks approximately $1.7 million in Tether (USDT) pilfered during the 2022 Deribit exchange hack, which resulted in $28 million in total losses. The hackers funneled the stolen assets through Tornado Cash, an Ethereum-based mixer, and several cryptocurrency wallets to evade detection.
Another complaint focuses on recovering $970,000 in Avalanche-bridged Bitcoin (BTC.b) stolen in a 2023 attack on Stake.com, a crypto gambling platform. This attack led to a $41 million loss for Stake.com, marking another significant breach attributed to the Lazarus Group.
Lazarus Group’s Extensive History of Crypto Hacks
The Lazarus Group, a notorious North Korean hacking organization, has been linked to numerous crypto heists. The Deribit and Stake.com incidents represent only a small fraction of their cybercrime activity. In July 2024, they allegedly targeted the WazirX exchange, stealing around $235 million.
According to onchain detective ZackXBT, a detailed investigation revealed that North Korean developers had infiltrated at least 25 cryptocurrency projects by using fake identities. These developers compromised code and drained project treasuries, all while operating under the same entity, believed to be Lazarus.
FBI Issues Multiple Warnings About Lazarus Group Activities
In response to the increasing cyber threats, the Federal Bureau of Investigation (FBI) issued several warnings in September 2024, highlighting the group’s sophisticated social engineering tactics. One of their methods involved sending fake job offers to unsuspecting victims. Once trust was established, the hackers persuaded the victims to download malware disguised as employment documents, leading to the theft of sensitive data and assets.
Increasing Crypto Losses From Hacks and Exploits
According to PeckShieldAlert, crypto hacks and exploits resulted in over $120 million in losses during September 2024 alone, underscoring the severity of the threat posed by cybercriminals like the Lazarus Group. The U.S. government’s recent legal actions reflect an ongoing effort to crack down on these activities and recover stolen funds.
