North Korea’s Lazarus Successfully Cashes Out $300 Million from ByBit Crypto Heist

North Korea’s Lazarus hackers have withdrawn $300 million from their record-breaking $1.5 billion crypto heist on ByBit. 

According to blockchain analytics firm Elliptic, the cybercriminal group linked to the North Korean regime executed one of the most sophisticated laundering operations in recent history. Despite ongoing efforts to track and freeze the stolen assets, at least 20% of the funds have already disappeared.

Lazarus exploited a security breach at ByBit

The attack on ByBit occurred on February 21, when Lazarus infiltrated one of the exchange’s third-party suppliers. The hackers manipulated a transaction, redirecting 401,000 ETH meant for ByBit into their wallets. The breach was executed before the exchange detected any irregularities.

Source: Elliptic

ByBit CEO Ben Zhou assured users that customer funds were not impacted. The exchange covered the stolen amount through investor loans and launched a bounty program to recover the missing funds. So far, 20 individuals have been rewarded $4 million for helping trace and freeze $40 million of stolen assets. However, Lazarus continues to evade detection through advanced money-laundering techniques.

Hackers are laundering funds despite global efforts

Lazarus is moving the stolen crypto through a complex web of transactions to obscure its origins. Experts tracking these movements warn that the stolen money could finance North Korea’s military programs. Tom Robinson, co-founder of Elliptic, stated that the hackers are using sophisticated tools to confuse blockchain analysis and avoid detection.

Despite ByBit and other exchanges actively freezing stolen funds, not all crypto platforms cooperate. One exchange, eXch, has been scrutinized for allegedly allowing Lazarus to cash out over $90 million. ByBit and other industry players have criticized eXch’s owner, Johann Roberts, for failing to act quickly. Roberts denied any wrongdoing, claiming his company was initially unsure if the funds were from the hack due to a long-standing dispute with ByBit. He later stated that eXch is cooperating but also expressed concerns about increasing regulations in the crypto industry.

Lazarus continues to target Crypto platforms

Lazarus has been responsible for several major cyber heists, shifting its focus from traditional banking hacks to cryptocurrency exchanges over the past five years. Notable attacks include the 2019 UpBit breach, the 2020 KuCoin hack, the 2022 Ronin Bridge exploit, and the 2023 Atomic Wallet breach.

Global law enforcement tracking in conjunction with sanctions has failed to stop Lazarus from executing major theft operations. Lazarus stands on the Cyber Most Wanted list drawn up by the United States yet the chances of apprehension are slim since its members stay inside North Korea.

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