North Korea’s Lazarus Group Tied to $23M UK Crypto Heist on Lykke

Summary: Who was behind the $23 million hack of the UK crypto exchange Lykke?

The Lazarus Group, a cybercrime organization linked to North Korea, has been connected to the hack. They stole 158 Bitcoin and 2,161 Ethereum, laundering the Ethereum through DAI while moving the Bitcoin across multiple wallets. The attack contributed to Lykke’s collapse and subsequent liquidation.

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The Lazarus Group, a cybercrime organization linked to North Korea, has been connected to a $23 million hack of the now-defunct UK crypto exchange Lykke, a breach that contributed to the platform’s collapse.

The crypto trading platform suffered a security breach in June 2024, resulting in losses of nearly $23 million. Investigators found that the attackers had stolen 158 Bitcoin (BTC) and 2,161 Ethereum (ETH). The stolen Ethereum was reportedly laundered by converting it into DAI, an algorithmic stablecoin from MakerDAO, while the Bitcoin was moved across multiple wallets to obscure its trail.

In March, a UK court ordered the liquidation of Lykke following legal action from more than 70 users who sought to recover lost funds totaling £5.7 million (around $7.1 million).

According to a report by The Telegraph, the British Treasury’s sanctions office alleged that the heist was conducted by the Lazarus Group. “The attack has been attributed to malicious Democratic People’s Republic of Korea cyberactors, who stole funds on both the Bitcoin and Ethereum networks,” the Office of Financial Sanctions Implementation (OFSI) stated.

If confirmed, the Lazarus Group’s attack on Lykke would represent North Korea’s largest known crypto-related fraud in the UK. Analysts believe such operations are part of Pyongyang’s broader strategy to finance its nuclear and military programs.

The Lazarus Group has been linked to multiple crypto attacks in recent months, including an alleged breach of Indian exchange CoinDCX that resulted in $44 million in losses. Cybersecurity firm Cyvers noted that the techniques used in the attack closely resemble the group’s prior operations.

Earlier this year, the Lazarus Group reportedly carried out the largest crypto heist, targeting crypto exchange Bybit and stealing approximately $1.5 billion, an event that drew widespread attention in both mainstream media and online crypto communities.

The incident emphasizes the growing risks facing cryptocurrency platforms worldwide and spotlights the ongoing challenge for regulators and security experts to stay ahead of increasingly sophisticated cybercriminal operations. As digital assets become more mainstream, exchanges and investors alike must remain vigilant, adopting stronger security measures and compliance practices to protect both funds and trust in the rapidly evolving crypto ecosystem.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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