Lykke Exchange Liquidated After $23M Hack

Lykke, a UK-based crypto exchange, ceased operations in March 2024 following a $23 million hacker attack linked to North Korea’s Lazarus Group, resulting in founder Richard Olsen’s bankruptcy.

This incident highlights cybersecurity vulnerabilities in the crypto industry and raises concerns about North Korea’s use of stolen digital assets to fund prohibited military projects.

Lykke’s $23M Hack and Legal Fallout

In March, Lykke’s operations were ceased following a significant security breach resulting in a £17 million ($22.8 million) loss of Bitcoin and Ethereum. Investigations suggest North Korea’s Lazarus Group used the stolen funds for illicit activities. Richard Olsen, founder of Lykke, was declared bankrupt as a result of the hack and liquidation order.

User lawsuits and regulatory warnings emerged quickly. Over 70 users initiated legal action, demanding refunds totaling approximately £5.7 million. The incident raised alarms over Lykke’s unlicensed status and reinforced the need for stringent compliance in crypto exchanges.

Richard Olsen, Founder of Lykke, ‘No official public statements on personal or company Twitter, LinkedIn, or Medium have been found as of August 18, 2025.’ source

North Korean Cyber Threats Prompt Regulatory Review

Did you know? The Lazarus Group, tied to North Korea, consistently exploits cryptocurrency exchanges to evade sanctions, leveraging stolen assets for national military objectives.

Bitcoin’s current price stands at $116,977.81, with a market cap of $2.33 trillion and a circulating supply of approximately 19.9 million BTC. Over the past 24 hours, Bitcoin’s trading volume surged by 61.03%, alongside a price dip of 0.76%, according to CoinMarketCap data.

Experts from Coincu highlight the regulatory consequences of the Lykke case, predicting an increase in compliance measures to protect exchanges from systemic risks. This incident demonstrates the financial industry’s need for robust cybersecurity, emphasizing the importance of vigilance against cyber threats.