The enigmatic Lazarus Group has made its indelible mark on the crypto market once again. The notorious cybercrime syndicate has been linked to an additional stolen $37 million on TRON (TRX) and Bitcoin (BTC) networks that have recently been located, elevating the total theft to a mammoth $60 million in the aftermath of the Alphapo Wallet hack. This discovery comes from a previously reported theft of $23 million, bringing concerns about the security of digital assets and the audacity of cyber criminals.
Alphapo Hot Wallet Exploit Surpasses $60 Million
On July 23, security experts announced that Alphapo, a leading cryptocurrency payment platform, suffered a significant breach in its hot wallets involving Ether, TRON, and Bitcoin. The theft amounted to at least $23 million, although due to uncertainty over the exact number of Bitcoins stolen, the total could be even greater.
Renowned blockchain investigator, ZachXBT, reports that the funds were initially pilfered from the Ethereum network. The stolen assets were subsequently converted into ETH and then transferred to the Avalanche and Bitcoin blockchains. DeDotFi’s security team suggests that a leak of private keys could have potentially facilitated the hack. Investigations into the incident continue.
ZachXBT’s further investigation reveals an additional $37 million stolen on TRON (TRX) and Bitcoin (BTC) networks, pushing the total stolen assets from this hack to a staggering $60 million. These funds, previously unaccounted for, were located as part of an ongoing investigation into the large-scale theft.
An Alphapo spokesperson has stated that they are gradually reinstating deposits and withdrawals for different currencies. They urged users to avoid sending funds to old deposit addresses. In case such deposits occur, they clarified that additional verification will be undertaken for those funds.
Is Lazarus Group Waking Up To Accelerate Nuclear Missions?
According to ZachXBT’s investigation, the Lazarus Group, a notorious cybercrime collective believed to be state-sponsored by North Korea, is involved in the hack. The group’s unique theft leaves a unique on-chain fingerprint, a trail that the investigator believes points directly to their involvement in this case.
The Lazarus Group is known for its high-profile attacks on cryptocurrency exchanges and payment platforms. Their trademark technique involves stealing funds and then moving these assets across various blockchains and laundering them through mixers, making them difficult to trace.
Law enforcement agencies and cybersecurity firms worldwide are in a race against time to trace the stolen funds. The decentralized and anonymous nature of cryptocurrencies, however, provides a significant hurdle. The ability to perform anonymous transactions makes them an attractive asset for criminal elements.
In early 2023, the FBI verified that the Lazarus Group executed a $100 million cryptocurrency theft on the Horizon Bridge blockchain network last year.
According to the blockchain analysis company Chainalysis, hackers backed by North Korea stole a staggering $1.7 billion worth of cryptocurrency in 2022. This amount nearly quadruples North Korea’s previous record of cryptocurrency theft, which stood at $429 million in 2021.
The stolen assets represent 44% of the total $3.8 billion crypto haul taken in hacks last year, a figure that Chainalysis dubs “the biggest year ever for crypto hacking.”
Experts suggest that North Korea, struggling with severe sanctions, is resorting to crypto theft to finance its nuclear weapons program. North Korea has already performed six nuclear tests, and under the leadership of Kim Jong-un, analysts anticipate a seventh one this year.
Despite its struggling economy, North Korea continues to conduct missile launches and prepare for nuclear weapons tests. This is viewed by experts as evidence of the country’s escalating nuclear ambitions.
