Crypto’s Biggest Hack Turns into Laundering Scandal
North Korean hackers have successfully laundered up to $300 million of their record-breaking $1.5 billion crypto hack, making recovery of the funds nearly impossible.
The hack, which was conducted by the notorious Lazarus Group, targeted the Bybit crypto exchange two weeks ago. The authorities and blockchain researchers have been in a mad dash since then, attempting to track and freeze the stolen funds.
North Korea’s Cyber Army Finances Military Ambitions
Anonymice beleive that the hackers are laboring in an officially backed initiative to finance the military and nuclear ambitions of North Korea.
“Every minute counts for the hackers trying to keep the money trail under wraps,” said Dr. Tom Robinson, co-founder at crypto research firm Elliptic.
He stated that North Korea is the leading nation in hacked digital assets money laundering.
“I bet they have an entire room of people doing this, automated software and years of experience,” Robinson said.
Bybit and Elliptic’s report indicates that 20% of the pilfered funds are already “gone dark,” or traceless.
Bybit Offers Rewards for Recovery of Stolen Assets
To respond, Bybit has launched the Lazarus Bounty Program, which rewards users who help track and freeze stolen assets.
So far, 20 members have been compensated over $4 million for finding $40 million of the embezzled money. Specialists, however, caution that retrieving the remaining cash remains an uphill battle due to North Korea’s advanced laundering techniques.
Crypto Exchanges Under the Limelight for Laundering Facilitation
Another significant hindrance in blocking the laundering process is the non-cooperation of certain crypto exchanges.
Bybit accused rival platform eXch of facilitating hackers to withdraw more than $90 million in illicit funds.
eXch owner Johann Roberts initially brushed off the accusations as an ongoing rivalry with Bybit. He later admitted cooperating with officials.
Regardless of incessant attempts, cybersecurity experts say that North Korean state-sponsored cybercrime activities will persist as long as crypto exchanges remain divided in combating illegal transactions.
“North Korea has cultivated a successful hacking and crypto-laundering business, and they don’t care about the negative reputation of cybercrime,” Check Point Security’s Dr. Dorit Dor said.
Chainflip Upgrade Aims to Halt Future Laundering
With over $1.2 billion still unaccounted for, it remains a race against time to track down the rest of the money.
At the same time, cross-chain DEX Chainflip is getting ready for a protocol update to block hackers from utilizing its platform to wash stolen funds.
The new 1.7.10 update brings with it more advanced screening tools, allowing platforms such as SwapKit and Rango DEX aggregator to decline suspicious ETH and ERC-20 token deposits.
While regulators and exchanges fight to stem the tide of crypto-based cybercrime, the most recent heist by the Lazarus Group serves to highlight the need for greater security and international cooperation in combatting illicit flows of digital assets.
