Posted: 19:36, 14 April 2022 | Updated: 10:51, 15 April 2022
Hackers linked to Kim Jong Un were behind a $ 615 million cryptocurrency robbery to finance North Korea’s nuclear weapons, the US government has said.
Players of the online game Axie Infinity lost more than half a billion dollars on Ethereum and other cryptocurrencies last month after a hacker invasion of Pyongyang.
The FBI and the US Treasury Department yesterday identified the shadowy hacker group North Korea Lazarus as the cybercriminals responsible for the March 23 theft.
Lazarus is controlled by Kim Jong Un’s personal CIA, Pyongyang’s General Reconnaissance Office, according to Washington.
Axie players can earn cryptos by playing the game or selling their avatars.
FBI claims Lazarus hackers linked to Kim’s intelligence (Pyongyang archive image)
A Treasury Department spokesman said North Korea was using cryptocurrency insecurity to fund its missile programs.
They said: “The United States knows this [North Korea] is increasingly relying on illegal activities – including cybercrime – to generate revenue for weapons of mass destruction and ballistic missile programs as it seeks to circumvent harsh US and UN sanctions.
The spokesman warned those trading in the wallet could be exposed to US sanctions.
The hackers themselves invaded the NHS in 2017, canceling almost 20,000 appointments.
Lazarus is also believed to be behind Sony’s hack in 2014 to stop the release of the comedy against Kim The Interview.
Axie Infinity gamers lost more than $ 600 million in encryption, including Ethereum
Aleksander Larsen, co-founder of Axie Infinity creator Sky Mavis, declined to comment.
CrowdStrike, which was hired by Sky Mavis to investigate the breach, also declined to comment.
A person familiar with the matter confirmed that the North Korean hackers had been at the center of the investigation of the cyber security companies for the last two weeks.
Blockchain companies Chainalysis and Elliptic reiterated that North Korea was behind the invasion.
The United States is pushing for the UN Security Council to blacklist the Lazarus Group and freeze its assets, according to a draft resolution considered by Reuters on Wednesday.
Hacks have long plagued encryption platforms. The hack on the Axie Infinity Ronin platform was one of the largest cryptocurrency robberies ever recorded.
Sky Mavis said it would use a combination of its own balance sheet funds and $ 150 million raised by investors, including Binance, to make up for lost money.
Justice Department charges hacker Jon Chang Hyok after FBI manhunt (warrant image)
They said: “We are still in the process of adding additional security measures before redeveloping the Ronin Bridge to mitigate future risk. Expect the bridge to be developed by the end of the month.
A Treasury Department spokesman said Washington would try to publish security guidelines on the encryption site to help protect it from stolen virtual currency.
Last year, the Department of Justice blamed three North Koreans for the NHS ransomware attack.
The February 2021 indictment charged Jon Chang Hyok, Kim Il and Park Jin Hyok with crimes such as conspiracy to commit bank fraud.
And this week, an American cryptographer was jailed for five years after teaching North Koreans how to avoid US sanctions.
Virgil Griffith, 39, taught more than 100 people how to use blockchain technology to overcome international restrictions at an encryption conference in Pyongyang three years ago.
Many of the companies and people he trained are believed to have worked for the North Korean government.
