South Korean Police Confirm Lazarus Group Behind 342,000 ETH Upbit Hack

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As a researcher with extensive experience in cybersecurity and cryptocurrency, I find it alarming yet intriguing to witness the audacious and sophisticated operations of the Lazarus Group and Andariel. The 2019 theft of 342,000 Ethereum from Upbit, South Korea’s largest cryptocurrency exchange, is a stark reminder of the growing threat posed by state-sponsored hacker groups.

The South Korean police have verified that the notorious hacker groups Lazarus and Andariel are believed to be behind the 2019 theft of approximately 342,000 Ethereum (ETH) from Upbit, South Korea’s most prominent cryptocurrency exchange. This marks the first instance where authorities have openly attributed a domestic hack to North Korean involvement.

4 trillion won in stolen funds, currently valued as such, moved across various global exchanges. However, even though this theft was on a grand scale, just a tiny fraction was successfully recovered. To be precise, 4.8 Bitcoins were found and returned by a Swiss exchange.

Lazarus and Andariel Steal 342,000 ETH From Upbit

In 2019, it was confirmed by South Korean authorities that hacker groups Lazarus and Andariel, known for their activities from North Korea, orchestrated a heist of 342,000 Ethereum (ETH) from Upbit, a South Korean cryptocurrency exchange. The stolen ETH, worth more than 1.4 trillion won ($1 billion), was meticulously laundered. As per yna.co’s report, around 57% of the stolen ETH was converted into Bitcoin at a 2.5% reduced rate on three unidentified exchanges, which might have been established by North Korea. The rest of the cryptocurrency was traced moving through 51 exchanges in 13 different countries, with significant involvement from major exchanges in the US and China.

South Korean officials collaborated closely with the FBI in the U.S., as well as other international bodies, to trace the stolen digital assets. Even though many laundered funds were spread out across various foreign platforms, the probe eventually resulted in a substantial recovery. Upon providing evidence to Swiss authorities, they managed to retrieve 4.8 Bitcoins, valued at approximately 600 million Korean won, and returned it to Upbit. This instance of recovering stolen funds is quite unusual.

This theft highlights North Korea’s increasing reliance on cryptocurrency hacks to fund its activities. The Lazarus Group has led North Korea in carrying out multiple high-profile cyberattacks on top crypto exchanges.

In my analysis, I’d like to draw attention to the escalating instances of cyber thefts and fraudulent activities that are becoming increasingly prevalent within the cryptocurrency sector. To put it into perspective, the US Department of Justice has recently indicted five individuals for orchestrating a heist worth approximately $6.3 million in digital assets.

North Korea’s Long History of Crypto Thefts and Global Impact

The Lazarus Group functions as a cybercrime entity supported by the North Korean government. They execute complex hacking attacks aimed at both traditional financial systems and digital currency exchanges worldwide. Their primary objective is to swipe valuable resources, particularly cryptocurrencies.

More recently, it has been connected that the Lazarus group was associated with a Bitcoin heist worth $238 million in August 2023. In this incident, the stolen funds were transferred through various digital platforms, leading to heightened conjecture about their participation. As experts scrutinized the questionable transactions, theories about their complicity grew stronger.

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2024-11-21 13:38