From 2016 to 2023, North Korean hackers attacked 20 cryptocurrency platforms, raising concerns in the industry. According to blockchain analysis company Chainalysis, this is the highest level of cryptocurrency hacking of all time.
“Hackings linked to North Korea have been on the rise over the past few years, and cyber espionage groups such as Kimsuki and the Lazarus Group have been utilizing a variety of malicious tactics to secure large amounts of cryptocurrency assets,” Chainalysis explained.
Blockchain intelligence company TRM Labs also claimed that North Korea stole at least $600 million in cryptocurrency in 2023. Following the report, the FBI confirmed that the Lazarus Group was behind the theft of approximately $41 million in cryptocurrency assets from “ Stake Casino, ” a popular online casino and sports betting venue.
In November 2023, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned Sinbad.io, a cryptocurrency mixer used by the Lazarus Group for money laundering. Cryptocurrency mixers are platforms that combine various coins into one mix, making transactions difficult to track.
Hackers linked to North Korea stole cryptocurrency to finance nuclear weapons project. TRM Lab said, ‘With approximately $1.5 billion stolen in the past two years alone, North Korea’s hacking capabilities require continued vigilance and innovation from businesses and governments.’
It also said that despite the exchange’s cybersecurity advancements, it could see more disruption by 2024 due to the world’s largest number of cyber thieves. Even global partnerships that help track and recover stolen funds can’t stop North Korean hackers.
Nexo sues Bulgaria for $3 billion in damages
Cryptocurrency lender Nexo has reportedly filed a lawsuit against Bulgaria for damages worth $3 billion. The lawsuit stems from the company’s abandonment of criminal proceedings that would have thwarted its plans for a U.S. stock market listing and soccer sponsorship deals.
Nexo AG, the Swiss subsidiary of Cayman Islands-based Nexo Capital, has filed with the World Bank’s International Center for Settlement of Investment Disputes (ICSID). It also noted that the investigation damaged the company’s reputation and reduced shareholder value.
The Bulgarian Ministry of Finance responded that it had received the ICSID arbitration request. An expert collaborative committee will review the request and recommend further action.
‘Neither this document nor any other communication… shall in any way be considered an admission of the substance of any claim or an acceptance of jurisdiction to arbitrate’. The prosecution, the respondent in this case, did not comment on this request.
Bulgarian prosecutors began investigating Nexo AG in January 2023, raiding its offices in Sofia and charging its founders with various crimes. These include tax and computer fraud, money laundering, and involvement in organized crime syndicates.
However, due to lack of evidence, the decision was made to drop the charges in December 2023. Prosecutors said Bulgaria does not have a regulatory framework in place for cryptocurrency asset servicing.
Nexo was co-founded by former Bulgarian senator Antony Trenchev, who denies wrongdoing and claims it was all politically motivated. Pakistan, Venezuela and Ecuador have also previously been ordered to pay billions of dollars in damages by ICSID.
As cryptocurrency fraud and regulatory issues arise, many cryptocurrency users, including ‘ stake casino ’ players, have begun to express their concerns. They believe that the cryptocurrency industry is still unstable despite its success over the past few years.
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- Source: Plato Data Intelligence.
