FBI: North Korea is behind a $1.5 billion cryptocurrency theft.

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Federal Bureau of Investigation FBI has accused North Korea of orchestrating the largest cryptocurrency heist in history stealing approximately $1.5 billion in digital assets from the cryptocurrency exchange Bybit. Over $1.5 billion worth of Ethereum was stolen in this operation, which was ascribed to a gang called TraderTraitor, also known as the Lazarus gang. By altering the transfer procedure hackers were able to divert money to unidentified addresses during a standard transfer from a cold wallet which is normally offline and protected.

Lazarus Group a notorious cybercrime entity linked to North Korea has been involved in numerous high profile cyberattacks over the years. Notably they gained international attention for hacking into Sony Pictures in 2014 as retaliation for the film The Interview which mocked North Korean leader Kim Jong Un. North Korea's cyber warfare capabilities are extensive with a 6000 strong cyber unit known as Bureau 121 operating from several countries. This unit has been instrumental in generating foreign currency for North Korea through cybercrime helping to circumvent international sanctions and support the country nuclear ambitions.

FBI urged private sector entities including exchanges and blockchain analytics firms to block transactions linked to the stolen assets. Some of the stolen funds have been quickly turned into Bitcoin and other cryptocurrencies by hackers, who have distributed them around thousands of addresses on several blockchains. The FBI expects these assets to eventually be turned into conventional money after undergoing additional laundering. With a bridging loan from its partners Bybit which serves more than 60 million users worldwide has secured a sizeable amount of stolen Ethereum and assured that client money remain protected. This incident highlights need for improved security measures to safeguard digital assets and the growing threat of cybercrime in the bitcoin sector.