North Korea Linked Hackers Were Behind $70 Million Heist: Report

In a developing report, cryptocurrency researchers have suggested that hackers linked to North Korea are the primary suspects in a significant security breach involving the crypto exchange CoinEx. It is believed that these cybercriminals managed to steal a staggering $70 Million.

This alarming revelation raises concerns about the involvement of state-sponsored hacking groups in targeting cryptocurrency platforms. The security breach highlights the ongoing challenges faced by the crypto industry in safeguarding digital assets from sophisticated cyberattacks. Experts are closely monitoring the situation for further developments and insights into the attackers’ methods and motives.

As reported by Reuters, CoinEx, a cryptocurrency exchange claiming Hong Kong as its base, announced on the social media platform X (formerly Twitter) that their wallets, used for storing the exchange’s cryptocurrency holdings, fell victim to a cyberattack.

On Friday, the exchange disclosed that it assessed its losses at approximately $70 Million, emphasizing that this amount represents only a “minor portion” of its overall assets. This incident underscores the ongoing security challenges faced by cryptocurrency exchanges and their imperative to protect digital assets from malicious actors.

Investigations are underway to determine the full extent of the breach and its implications for CoinEx and its users.

Blockchain research firm Elliptic has pointed to several compelling factors suggesting that the Lazarus Group, a notorious hacker group associated with North Korea, played a pivotal role in the attack.

These indications raise serious concerns about state-sponsored cyber threats targeting the cryptocurrency sector. Investigations into the incident are ongoing as experts delve deeper into the evidence connecting the Lazarus Group to the security breach.

Elliptic, a blockchain research firm, has revealed significant findings regarding the CoinEx security breach. They discovered that a portion of the stolen funds from CoinEx was directed to a cryptocurrency wallet address previously associated with the Lazarus Group’s activities in laundering stolen assets. Furthermore, the funds were transferred to the Ethereum blockchain using a blockchain “bridge.”

This bridge had also been utilized by the Lazarus Group in past operations. These connections further strengthen the case for the Lazarus Group’s involvement in the cyberattack on CoinEx. The investigation into this incident is on, shedding light on the sophisticated tactics employed by cybercriminals in the cryptocurrency space.

Elliptic has reported that the Lazarus Group seems to have intensified its cyber operations, conducting four separate attacks since the start of June in addition to the CoinEx breach. These attacks collectively resulted in the theft of approximately $240 Million in cryptocurrency assets. This escalation in cybercriminal activities underscores the group’s growing expertise and audacity.

North Korea has notably increased its cryptocurrency-related theft activities in recent years, with 2022 witnessing a significant surge in such incidents, as detailed in a United Nations report.

These cyberattacks have been attributed to helping finance the authoritarian state’s nuclear and missile programs, according to sanctions monitors. The situation highlights the evolving tactics employed by state-linked actors in the world of cryptocurrencies and the urgent need for enhanced security measures in the industry.