FBI Identifies North Korean Lazarus Group as Culprit Behind $41 Million Stake Hack

The Federal Bureau of Investigations (FBI) has confirmed that the infamous North Korean hacking syndicate, the Lazarus Group, was behind the recent attack on cryptocurrency platform Stake, resulting in the theft of over $41 million in crypto assets.

The Lazarus Group, known for its association with the Democratic People’s Republic of Korea (DPRK), or North Korea, has a long history of cybercrime activities. 

This time, the group targeted Stake, a platform specializing in cryptocurrency sports betting and casino games. 

The attack occurred on September 4, losing millions of dollars from Stake’s platform.

Following the attack, the FBI investigated the incident, ultimately identifying the Lazarus Group as the perpetrator. 

The agency disclosed a list of cryptocurrency wallet addresses where the stolen funds had been transferred. 

To safeguard the crypto community, the FBI recommended that cryptocurrency protocols and businesses scrutinize these addresses and refrain from engaging in transactions with them.

The FBI’s statement read, “Private sector entities are encouraged to review the previously released Cyber Security Advisory on TraderTraitor and examine the blockchain data associated with the above-referenced virtual currency addresses and be vigilant in guarding against transactions directly with, or derived from, those addresses.”

[JUST IN] FBI Identifies Lazarus Group Cyber Actors as Responsible for Theft of $41 Million from Stakehttps://t.co/Kq1tpjNuC5

— snailnews (@snailnews_) September 7, 2023

Stake’s Response and the Extent of the Hack

Stake initially detected “multiple suspicious transactions” on its platform, with around $16 million worth of Ethereum (ETH) and stablecoins being transferred illicitly. 

Subsequently, it was revealed that the attackers had also stolen approximately $25.6 million across the Polygon and Binance Smart Chain (BSC) networks. 

Although Stake confirmed unauthorized transactions in its Ethereum and BSC hot wallets, it assured users that their funds remained secure.

Blockchain security firm Boesin estimated the total amount stolen to be $41.35 million, with the loot divided into $15.7 million on Ethereum, $7.8 million on Polygon, and an additional $17.8 million on BSC.

The Lazarus Group has consistently been a menace to the cryptocurrency industry, performing some of the largest hacks. 

According to the FBI, the group has been responsible for crypto thefts totalling $200 million in 2023 alone.

One of the notable incidents linked to the Lazarus Group occurred in July when Estonian crypto payments platform CoinPaid fell victim to a $37.3 million theft. 

CoinPaid suspected that the hacking organization had spent six months studying their platform before executing the attack.

In a concerning development, the FBI issued a notice in August, warning that the Lazarus Group might attempt to sell 1,580 Bitcoins, valued at nearly $41 million at current prices. 

These digital assets were held across six different Bitcoin wallet addresses.

NB: Any Information provided is NOT FINANCIAL ADVICE. Do Your Research before making any Financial Decisions.