Janice R. Andrews
The FBI has identified North Korean hackers, specifically the Lazarus Group, as the perpetrators behind a massive $1.5 billion cryptocurrency theft from Bybit exchange, making it the largest digital heist in history.
The February 21 attack utilized spearphishing techniques and malware-infected cryptocurrency applications as part of the “TraderTraitor” campaign. The FBI warns that the hackers are quickly converting stolen assets to Bitcoin and other cryptocurrencies, spreading them across thousands of addresses to facilitate laundering into traditional currency.
This theft exceeds the previous record of $1 billion stolen by Saddam Hussein from Iraq’s central bank in 2003. Bybit, which serves over 60 million users as the world’s second-largest crypto exchange, has responded aggressively.
CEO Ben Zhou has declared “war against Lazarus,” launching a tracking website for the hackers’ wallet addresses and offering a 5% bounty for information leading to fund recovery, stating, “We will not stop until Lazarus and bad actors in the industry are eliminated.”
North Korea increasingly relies on cybercrime to fund its weapons programs, with a UN report indicating that 40% of its missile and nuclear development is financed through illicit cyber activities. Between 2017 and 2023, North Korean hackers stole approximately $3 billion from crypto firms. In 2024 alone, Pyongyang-linked actors have stolen $1.34 billion in 47 attacks, representing 61% of global cryptocurrency theft.
Beyond cybercrime, North Korea has strengthened military ties with Russia, reportedly sending munitions and approximately 12,000 troops to support Moscow’s war in Ukraine, with some soldiers already deployed to frontline positions in Kursk.
This attack highlights North Korea’s sophisticated digital warfare capabilities and its deepening military cooperation with Russia amid continuing international sanctions.
