FBI Blames North Korea for Largest Crypto Heist in History

By Staff, Agencies

The US Federal Bureau of Investigation [FBI] has accused North Korea of orchestrating the largest cryptocurrency hack to date, claiming that hackers stole approximately $1.5 billion from the Dubai-based Bybit exchange.

The FBI stated on Wednesday that the cyberattack, reported last week, involved the use of ‘TraderTraitor’—a set of malicious applications disguised as job offers. These applications trick victims into installing malware that enables hackers to infiltrate financial systems and steal digital assets.

According to the agency, the stolen funds were rapidly converted into Bitcoin and other cryptocurrencies, then dispersed across thousands of blockchain addresses to evade detection. The perpetrators are expected to launder the assets and convert them into fiat currency.

Bybit, which serves over 60 million users, reported that the breach occurred during a routine transfer of funds between digital wallets. Hackers exploited the process of moving assets from offline storage to a hot wallet used for trading, managing to siphon around 401,000 Ethereum tokens [$1.5 billion] to an unknown address. The exchange described the attack as highly sophisticated, noting that hackers manipulated the signing interface to conceal alterations to the underlying smart contract logic.

The company has since received over 350,000 withdrawal requests, warning of potential delays. Bybit has also called on cybersecurity experts to assist in recovering the stolen funds, offering a 10% reward on any recovered amount.

Western intelligence agencies have long accused North Korea of using cyberattacks to finance its weapons programs and bypass international sanctions. The Lazarus Group, a hacking unit allegedly linked to North Korea, has been associated with previous high-profile crypto heists, including the $620 million Ronin Network breach in 2022.

While North Korea has not responded to the latest allegations, it has previously denied involvement in cryptocurrency theft, dismissing such accusations as efforts to damage its reputation.