September 2023 has seen a series of high-profile cryptocurrency hacks, with the Lazarus Group, a North Korean hacking collective, emerging as a key player in siphoning off millions of dollars in digital assets. These incidents have sent shockwaves through the crypto community, leaving investors and enthusiasts grappling with the aftermath.
Let’s take a closer look at the hacking events that unfolded in September.
Stake.com
The hack of September happened on the 4th, when Stake.com, a cryptocurrency gambling site, experienced a staggering $41 Million withdrawal. This raised immediate suspicions among blockchain security analysts, as the withdrawal account ominously carried the label “Stake.com Hacker” on Etherscan. The source of the drained funds was traced back to a potentially stolen private key, sending alarm bells ringing across the industry.
The Lazarus Group Unmasked
On September 7th, the Federal Bureau of Investigation (FBI) confirmed that the Lazarus Group from North Korea was behind the $41 million hack of Stake.com. Even more astonishing was the revelation that this group had already pilfered over $200 million in cryptocurrency throughout 2023, highlighting the sheer audacity and sophistication of their operations.
Escalating Attacks
The Stake.com hackers didn’t stop there. CertiK, a blockchain security firm, uncovered their subsequent moves, revealing transfers amounting to $328,000 worth of Polygon and BNB tokens. Notably, on September 11th, 300 BNB tokens worth approximately $61,500 were bridged to the Avalanche blockchain.
Following that, crypto exchange CoinEx joined the growing list of victims on September 12th when unusually large outflows to an address with no prior history raised suspicions of a hack. Security experts estimated potential losses of around $70 million.
On September 14th, crypto exchange Remitano confirmed a hack that resulted in $2.7 million worth of crypto being withdrawn. Tether stepped in to freeze one of the attacker’s addresses, potentially safeguarding $1.4 million worth of customers’ assets.
On the same day, Balancer, an Ethereum-based decentralized finance protocol, issued a warning to users to avoid its website after a front-end attack. Despite the warning, blockchain security firms estimated that at least $238,000 in crypto was stolen.
High-Profile Hacks
Crypto’s high-profile targets extended beyond platforms as prominent figures fell victim to hacks. Ethereum’s co-founder, Vitalik Buterin, had his X account (formerly Twitter) compromised on September 9th. This breach resulted in collective losses exceeding $691,000 for victims who had unwittingly clicked on a malicious link.
Furthermore, on September 15th, billionaire investor Mark Cuban reportedly lost nearly $900,000 from one of his hot wallets.
The blows continued as the decentralized peer-to-peer network Mixin Network suffered a catastrophic loss of approximately $200 million in a hack that compromised the database of a third-party cloud service provider on September 23rd.
Lazarus Group’s Crypto Holdings
Data from Dune Analytics has shed light on the extent of Lazarus Group’s cryptocurrency holdings. Wallets linked to this North Korean outfit are believed to contain a staggering $47 million in cryptocurrency, primarily consisting of Bitcoin ($42.5 million), Ether ($1.9 million), BNB ($1.1 million), and stablecoins like Binance USD ($640,000).
While the reported figures for cryptocurrency stolen by North Korea-linked hackers in 2023, totaling $340.4 million, represent a significant decrease from the record-breaking $1.65 billion stolen in 2022, blockchain forensics firms caution against complacency. The persistent threat posed by hackers continues to loom large.
The cryptocurrency community now faces a pressing need to bolster security measures and stay vigilant in the face of relentless cyber threats.
Have you ever been hacked? Tweet your story @The_NewsCrypto
