North Korean Lazarus Group orchestrated two noteworthy cryptocurrency hacks in 2024. Among them is the record crypto hack of a $1.4 billion theft from Bybit. The other involved a $29 million attack against Phemex. These build their record in cybercrime among cryptocurrencies. This article will explore these attacks in detail, their linkage, and what it has to say regarding crypto security.
Who Is the Lazarus Group?
The Lazarus Group is one of the North Korean hacking teams responsible for the largest crypto heists. In 2024 alone, they were in charge of hacking more than $1.34 billion worth of cryptocurrency assets, including exchanges like Ronin and WazirX. They are allegedly using these hacks in a similar manner to finance North Korea’s weapons development.
Bybit Hack: $1.4 Billion Stolen
The Bybit exchange was hacked on February 21, 2024, when more than $1.4 billion of crypto was robbed. So, all about liquid-staked Ether (STETH) and those ERC-20 tokens. Cybersecurity experts blamed the hack on the Lazarus Group, labeling it the largest crypto hack ever.
Phemex Hack: $29 Million Stolen
Lazarus Group hit Phemex in January of 2024, stealing $29 million. The money was transferred in 125+ transactions over 11 blockchain networks. The stolen funds were laundered via crypto-mixing services such as Tornado Cash, rendering them difficult to track. Onchain data connects the money from both the Bybit and Phemex hacks to Lazarus Group.
How Do These Hacks Work?
Each hack follows a shared attack method: clever ways of controlling wallets. Bybit hack perpetrators fooled signers into endorsing ill-gotten amendments to a multisig cold wallet, putting it under attackers’ control as well as claiming control over stolen funds. Sophisticated crypto-mixing and social engineering are the most important ways in which the Lazarus Group conceals their spoils.
What This Means for Crypto Security
These hacks also point to an emerging threat within the crypto space. Exchanges must enhance their security measures, including multi-signature wallets and encryption. The sustained success of Lazarus Group goes to attest to how important good security is to protecting crypto funds from such high-level exploits.
A Wake-Up Call to the Cryptocurrency Industry
The Phemex and Bybit hacks attributed to the Lazarus Group should wake us all up. With billions of dollars at stake, the cryptocurrency space must raise its game when it comes to security. If exchanges and investors can recall these hacks, they will be better able to defend themselves against threats in the future.
