Lazarus Group Accused of Stealing $23M From British Crypto Startup Lykke
North Korea’s infamous Lazarus Group has been linked to the $23 million crypto heist that brought down British startup Lykke.
Lykke, a crypto trading platform incorporated in the UK, lost nearly $23 million last year due to a security breach. Investigations at the time revealed that hackers stole 158 BTC and 2,161 ETH. The hacker laundered the stolen Ether by swapping it for DAI, an algorithmic stablecoin issued by MakerDAO. Meanwhile, Bitcoins were subsequently transferred to multiple wallets.
In March, a Judge ordered Lykke to be liquidated after several affected users carried out a legal campaign.
Per a recent report by The Telegraph, the British Treasury’s sanctions office accused the Lazarus Group of orchestrating the heist.
“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) said.
The OFSI had worked closely with law enforcement, the UK Treasury noted.
Lazarus Group’s Biggest Known Crypto Heist Targeting the UK
If reports are confirmed, the heist would become North Korea’s biggest crypto fraud targeting Britain. The Lazarus hackers have so far succeeded in the largest $1.5 billion heist connected to crypto exchange ByBit this year.
Further, cybersecurity experts from Cyvers have also linked the Lazarus Group to the July 19 hack on the Indian crypto exchange CoinDCX, compromising $44 million.
The stolen funds from these heists are suspected to be part of Pyongyang’s broader efforts to fund its nuclear weapons and military programs, with billions already funnelled through previous crypto raids.
Crypto Fraud Detection Whitestream Blames North Korean Cyber Gang
An Israeli crypto investigation firm, Whitestream, has confirmed Lazarus’ involvement in Lykke’s heist, besides the UK Treasury arm’s investigation.
Investigators noted that attackers had laundered the stolen funds through two other cryptocurrency companies, avoiding money-laundering controls.
However, other researchers have denied the conclusions, stressing that it is too early to jump to blaming Lazarus.
Founded in 2015, Lykke operated from Switzerland but was registered in the UK. The platform offered cryptocurrency trading without transaction fees.
In 2023, the UK’s FCA issued a warning about Lykke over its unregistered offering of crypto products to Brits.