North Korea’s Lazarus Group Was Behind $41 Million Stake Hack

The FBI has linked the notorious Lazarus Group to the Stake hack, which drained over $41 million worth of cryptocurrency from the platform's hot wallets.

Sep 8, 2023 - 12:42
Oct 19, 2023 - 12:49
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North Korea’s Lazarus Group Was Behind $41 Million Stake Hack
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The recent cyberattack on the crypto gambling platform, Stake, has been an impact to the industry. With the FBI pointing fingers at the infamous North Korean hacking group, Lazarus, the incident has raised questions about the safety and North Korea's hacking implications.

Stake, a renowned crypto gambling platform offering a mix of casino games and sports betting, fell victim to a massive cyberattack on September 4th. The attackers managed to drain over $41 million worth of cryptocurrency from the platform's hot wallets. While the Stake team assured that only a small percentage of funds were taken and users would remain unaffected, the magnitude of the heist was undeniable.

The Lazarus Group, believed to be closely associated with the Democratic People's Republic of Korea (DPRK), also known as North Korea, has been a recurrent name in the world of cybercrime. The FBI's investigation into the Stake incident revealed that this notorious group was behind the attack. This isn't their first rodeo; the group has been linked to multiple high-profile hacks over the years. In 2023 alone, they are believed to have stolen over $200 million in crypto. 

In a previous instance, the U.S. Treasury Department linked the hacking collective to a significant $622 million breach affecting the Ronin Network, an Ethereum sidechain associated with the crypto-based game Axie Infinity. This incident ranked among the most substantial crypto security breaches in history.

Their modus operandi often involves funneling stolen crypto across various networks, including Bitcoin, Ethereum, Polygon, and Binance Smart Chain. The FBI has released addresses of digital wallets believed to contain the stolen funds, urging businesses and crypto protocols and avoid transacting with them, stating:

“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.”

The Stake hack is just the tip of the iceberg. The Lazarus Group has been linked to a series of cyberattacks. In June, Atomic Wallet users lost a staggering $100 million through an undisclosed exploit. Alphapo, a payment processor, experienced over $65 million in suspicious withdrawals in July. CoinsPaid, another payment firm, lost over $37 million in late July due to social engineering tactics. 

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.