U.S. Seizes $2.7M in Crypto as North Korean Hackers Face Crackdown After $879M Theft

In a series of coordinated legal moves, the United States government is stepping up its efforts to dismantle the cybercrime network led by North Korea's notorious Lazarus Group. On October 4, 2024, the U.S. initiated legal actions to seize over $2.67 million in stolen digital assets linked to the group, following a pattern of high-profile thefts across traditional financial institutions and the cryptocurrency sector.

The two most significant thefts cited in the filing include 1.7 million USDT taken from the Deribit exchange and 15.5 Bitcoin, valued at nearly $971,000, stolen from Stake.com. Recent evidence also suggests the group’s involvement in the breach of WazirX, a crypto exchange that lost $234.9 million. This series of heists highlights the Lazarus Group’s advanced techniques in hacking and laundering stolen digital currencies, which U.S. officials believe is part of a broader strategy to fund North Korea’s illicit activities.

With attacks spanning countries like Japan, Singapore, Vietnam, and the U.S., Lazarus employs a blend of sophisticated cyberattacks, extortion, and financial theft. The group’s continual return with new targets and tactics, inspired by the biblical figure Lazarus who rose from the dead, underscores their resilience in the cyber underworld. U.S. authorities are keen on cutting off their financial resources by tracking and freezing these stolen funds.

The FBI had previously warned of North Korean hackers using deceptive employment offers to trick cryptocurrency investors into downloading malware. In February 2021, indictments were issued against three North Korean programmers, marking a significant moment in the U.S. government’s crackdown on state-sponsored hacking campaigns.

Lazarus has also been linked to other notable attacks, including the infamous 2014 Sony Pictures hack and the creation of the WannaCry ransomware. Their attempts to cover their tracks using mixers like Tornado Cash have been met with success by law enforcement in tracing some of the stolen funds. These seizures represent a growing momentum in the U.S.’s efforts to cut off North Korea’s use of cryptocurrency as a financial lifeline for its rogue activities.