FBI says North Korea behind Bybit hack—world's biggest crypto heist
What's the story
The Federal Bureau of Investigation (FBI) has accused North Korea of a major cyber theft, stealing around $1.5 billion in digital assets from cryptocurrency exchange ByBit.
The incident marks the biggest heist in history, beating the previous record of $1 billion stolen by Saddam Hussein from Iraq's central bank before the 2003 war.
The FBI has called this particular type of North Korean cybercrime "TraderTraitor."
Cyber threat
FBI warns of North Korea's growing cybercrime expertise
The FBI has warned about the stolen virtual assets from Dubai-based crypto trading platform ByBit. The agency suspects these assets will be converted into currency.
"TraderTraitor actors are proceeding rapidly and have converted some of the stolen assets to bitcoin and other virtual assets dispersed across thousands of addresses on multiple blockchains," an FBI release said.
Cyber unit
North Korea's Lazarus Group linked to major cyber thefts
North Korea is infamous for its sophisticated cybercrime unit, the Lazarus Group, which has been associated with major thefts.
The proceeds from these illegal activities are reportedly used to finance the regime's nuclear and ballistic missile programs.
In 2024 alone, North Korea-linked hackers stole more than $1.3 billion in cryptocurrency, a record amount at the time, a report by blockchain analysis firm Chainalysis revealed.
Cyber strategy
North Korean hackers' tactics and impact
Chainalysis reported that North Korean hackers are infamous for their sophisticated and persistent methods.
They often use advanced malware, social engineering, and cryptocurrency theft to fund state-sponsored operations and evade international sanctions.
UN officials monitoring sanctions on North Korea suspect that proceeds from numerous alleged cyber-attacks between 2017 and 2023 were used to enhance its nuclear weapons program.
Economic struggles
North Korea's cybercrime activities amid economic challenges
Despite grappling with sanctions, COVID-19 pandemic, and natural disasters, Kim Jong-un has greatly enhanced North Korea's ability to hit far-off targets. Including the US mainland.
Cybercrime isn't the only way the regime earns foreign currency. It has also provided weapons and troops to bolster Russia's invasion of Ukraine in return for cash and technological know-how.
Company reaction
ByBit's response to the cyber theft
Responding to the cyber theft, ByBit disclosed that an attacker had gained control over an ether wallet and transferred the holdings to an unknown address.
The exchange caters to over 60 million users worldwide and offers access to a range of cryptocurrencies, including bitcoin and ether.
Now, after this incident, ByBit has called cybersecurity experts to help recover the stolen $1.5 billion.