FBI Accuses North Korea Of $1.5bn Crypto Theft

United States’ Federal Bureau of Investigation (FBI) has accused North Korea of being the brains behind the theft of $1.5 billion in digital assets from the cryptocurrency exchange Bybit last week, which is considered the biggest crypto heist ever.

The FBI identified a group called TraderTraitor, also known as the Lazarus Group, as responsible for the theft.

“TraderTraitor actors are proceeding rapidly and have converted some of the stolen assets to bitcoin and other virtual assets dispersed across thousands of addresses on multiple blockchains,” the FBI stated.

The stolen amount reportedly lost some of its value but exceeded the previous record of $1 billion stolen by Saddam Hussein from Iraq’s central bank before the 2003 war, highlighting North Korea’s growing expertise in cybercrime.

FBI added that the stolen assets would likely be further laundered and eventually converted to fiat currency, a government-backed currency not tied to commodities like gold.

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“It is expected these assets will be further laundered and eventually converted to fiat currency,” the FBI added.

Hackers linked to North Korea stole more than $1.3 billion in cryptocurrency in 2024, a record amount, according to a report published in late December by blockchain analysis firm Chainalysis.

The thefts were spread out over 47 incidents, a dramatic increase from the $660 million stolen in 2023.

“Hackers linked to North Korea have become notorious for their sophisticated and relentless tradecraft, often employing advanced malware, social engineering, and cryptocurrency theft to fund state-sponsored operations and circumvent international sanctions,” Chainalysis said in its report.

UN officials monitoring sanctions imposed on North Korea believe that the proceeds from dozens of suspected cyber-attacks carried out by the regime between 2017 and 2023 contributed to their funding.

In response to the heist, Bybit has offered a bounty for those who help recover the losses, setting up an online system to trace and freeze stolen funds.

Chief Executive Ben Zhou emphasised the importance of transparency in combating cybercrime.

“We are taking a stand to ensure that every transaction is visible and every hacker is held accountable. Our multi-pronged offensive is a clear message: if you steal, you will be found, and justice will be swift,” Zhou said.