The Largest Cryptocurrency Theft Ever Traced Back to North Korean Threat Actors
In a shocking turn of events, the largest single theft of cryptocurrency to date has been linked back to North Korean threat actors. The attack on Ronin Network, which occurred in late March, resulted in the theft of 173,600 Ethereum (equivalent to $592 million) and $25.5 million in two separate transactions.
Background on Ronin Network
Ronin Network was developed by Vietnamese blockchain game developer Sky Mavis to serve as an Ethereum sidechain for its popular game, Axie Infinity. This innovative platform allows players to seamlessly transfer cryptocurrency in and out of the game, enhancing the overall gaming experience.
North Korean Involvement Revealed
A recent update from the US Treasury Department linked the crypto wallet address used to receive the stolen funds to North Korea’s Lazarus Group, a notorious cybercrime syndicate known for its prolific hacking activities. The Office of Foreign Assets Control (OFAC) has placed sanctions on this group, making it difficult for North Korea to launder the stolen funds and imposing penalties on any entities engaging in business with the regime.
Response from Ronin Network
In response to the Treasury’s designation, Ronin Network has announced additional security measures to prevent future incidents. The team is diligently working to enhance the security of the Ronin Bridge before redeploying it, with a target timeline by the end of the month. They have expressed gratitude to law enforcement agencies for their support in the investigation and plan to provide a comprehensive post-mortem report outlining the security measures implemented and future steps.
Reimbursement Efforts and Funding Round
Sky Mavis, the company behind Ronin Network, recently led a $150 million funding round to facilitate the reimbursement of all affected customers. This substantial theft surpasses the infamous Poly Network heist from last year, underscoring the severity of the situation. North Korean state-backed attackers are known to target cryptocurrency to fund the regime and support illicit activities, with estimates suggesting they stole $400 million in cryptocurrency in 2021 alone.
The implications of this incident are far-reaching, highlighting the ongoing threat posed by cybercriminals and the importance of robust security measures in the cryptocurrency space. Stay tuned for further updates on this developing story.