Norwegian authorities have successfully tracked and intercepted 60 million kroner ($5.9m) in cryptocurrency that was stolen last year by North Korean actors, marking the largest heist of its kind ever recorded. The Scandinavian country’s economic and environmental crime agency (Økokrim) revealed that the threat actors from North Korea have been engaged in an extensive money laundering operation following the March 2022 raid on Ronin Network.
Økokrim’s state attorney, Marianne Bender, highlighted the agency’s proficiency in following the money trail, even on the blockchain, despite the criminals employing sophisticated tactics. Collaborating with FBI specialists, Økokrim has demonstrated the effectiveness of international cooperation in combating digital, profit-driven crimes.
The Ronin Network, developed by Vietnamese blockchain game developer Sky Mavis as an Ethereum sidechain for the Axie Infinity game, fell victim to a breach by the Lazarus APT group with ties to Pyongyang. The hackers exploited a malicious phishing email attachment, resulting in the theft of an estimated $618 million in cryptocurrency and cash, marking the largest cyber-heist in history.
Following months of investigative efforts, Økokrim successfully seized $30 million in funds stolen from Ronin, with assistance from blockchain analysis firm Chainalysis. The firm revealed that North Korean hackers are utilizing crypto mixer Tornado Cash to facilitate the laundering of the stolen funds.
The urgency of these efforts is heightened by the likelihood of North Korea using the stolen cryptocurrency to finance its rapidly expanding missile program. Marianne Bender emphasized the significance of tracking and intercepting the cryptocurrency to prevent its conversion into physical assets that could support North Korea’s nuclear ambitions.
The seized funds will be returned to Sky Mavis to enable the reimbursement of some of its affected customers, providing a measure of relief in the aftermath of the unprecedented cyber-attack. The collaborative efforts between international agencies and blockchain analysis firms serve as a crucial defense against the growing threat of sophisticated cybercrime and illicit financial activities.