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US Seizes $30M Worth of Cryptocurrency From North Korean Hackers – Featured Bitcoin News
Blockchain data analytics firm Chainalysis has revealed that US authorities have seized $30 million worth of cryptocurrency from North Korean hackers. “This is the first time ever that cryptocurrency stolen by a North Korean hacker group has been seized, and we’re sure it won’t be the last,” said the firm’s director of investigations.
$30 million in seized crypto linked to North Korea
Erin Plante, a senior director of investigations at blockchain data analytics firm Chainalysis, revealed Thursday at the Axiecon event that authorities have seized millions of dollars in cryptocurrency from North Korean hackers.
“With the help of law enforcement and leading organizations in the cryptocurrency industry,” she said:
More than $30 million in cryptocurrency stolen by North Korean-linked hackers has been seized.
“This is the first time ever that cryptocurrency stolen by a North Korean hacker group has been seized, and we’re sure it won’t be the last,” the director stressed.
“The seizures represent approximately 10% of the total funds stolen from Axie Infinity (accounting for price differences between time stolen and seized),” Plante described, noting that Chainalysis played a role in the seizures by using “advanced tracking techniques for to track stolen funds” to withdraw points and liaise with law enforcement and industry players to quickly freeze funds.”
More than $600 million from the Ronin Network, a sidechain built for the play-to-earn game Axie Infinity, was stolen in March. Chainalysis explained that North Korea-linked hacking elite Lazarus Group gained access to five of the nine private keys held by transaction validators for Ronin Network’s cross-chain bridge.
The hackers then initiated two withdrawal transactions: one for 173,600 Ether (ETH) and the other for 25.5 million USD Coin (USDC), the firm stated, noting that the North Korea-affiliated group laundered these funds using “over 12,000 different crypto addresses to -Date.”
The stolen ETH coins were mixed in batches using the popular mixing service Tornado Cash, Chainalysis continued. Following the sanctioning of Tornado Cash by the US Treasury Department’s Office of Foreign Assets Control (OFAC), “Lazarus Group has moved away from the popular Ethereum mixer, instead leveraging the defi [decentralized finance] services to chain, or exchange between several different types of cryptocurrencies in a single transaction,” the blockchain data analytics firm explained.
The director of investigations noted that “One of the most disturbing trends in cryptocrime right now is the stunning increase in funds stolen from defi protocols, and cross-chain bridges in particular,” elaborating:
We estimate that so far in 2022, North Korea-affiliated groups have stolen approximately $1 billion worth of cryptocurrency from defi protocols.
What do you think about the amount of cryptocurrency seized from North Korean hackers? Let us know in the comments section below.
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