North Korea’s Lazarus Group has been accused of orchestrating a $23 million crypto heist that targeted British startup Lykke, according to recent reports. The infamous hacking group has been linked to a series of high-profile cyber attacks, including the theft of 158 BTC and 2,161 ETH from the UK-based crypto trading platform.
Last year, Lykke fell victim to a security breach that resulted in the loss of millions in digital assets. The hackers behind the attack reportedly laundered the stolen funds by exchanging the Ethereum for DAI, a stablecoin issued by MakerDAO, and transferring the Bitcoins to multiple wallets. Following the incident, a Judge ordered the liquidation of Lykke after affected users launched a legal campaign.
The British Treasury’s sanctions office, known as the Office of Financial Sanctions Implementation (OFSI), has attributed the heist to the Lazarus Group. The OFSI worked closely with law enforcement to investigate the cyberattack and track the stolen funds on both the Bitcoin and Ethereum networks.
If confirmed, this would mark North Korea’s largest crypto fraud targeting the UK to date. The Lazarus Group has previously been linked to a $1.5 billion heist involving the crypto exchange ByBit and a $44 million hack on the Indian exchange CoinDCX. These attacks are believed to be part of Pyongyang’s efforts to finance its nuclear weapons and military programs, with billions already funneled through previous crypto raids.
Israeli crypto investigation firm Whitestream has also confirmed Lazarus’ involvement in the Lykke heist, noting that the attackers laundered the stolen funds through other cryptocurrency companies to evade money-laundering controls. However, some researchers have disputed these claims, stating that it is premature to solely blame the Lazarus Group for the attack.
Founded in 2015, Lykke operated out of Switzerland but was registered in the UK. The platform offered cryptocurrency trading without transaction fees, attracting users from around the world. In 2023, the UK’s Financial Conduct Authority (FCA) issued a warning about Lykke’s unregistered offering of crypto products to British consumers.
The implications of this latest cyberattack highlight the growing threat posed by state-sponsored hacking groups and the need for enhanced cybersecurity measures within the crypto industry. The post Lazarus Group Accused of Stealing $23M From British Crypto Startup Lykke appeared first on Cryptonews.