The FBI has attributed a massive $1.5 billion cyber heist of the cryptocurrency exchange ByBit to North Korea. This incident, labeled as the most significant theft in history, highlights the increasing cybercrime capabilities of North Korea. The stolen virtual assets, which have already decreased in value, surpass the previous record set by Saddam Hussein’s $1 billion theft from Iraq’s central bank prior to the 2003 war.

Referred to as “TraderTraitor” by the FBI, this specific malicious cyber activity by North Korea involves the rapid conversion of stolen assets into bitcoin and other virtual currencies spread across numerous addresses on various blockchains. The FBI anticipates that these assets will be further laundered and eventually converted into fiat currency, which is traditional government-backed currency not linked to commodities like gold.

North Korea operates a sophisticated cybercrime unit known as the Lazarus Group, which is believed to fund the regime’s nuclear and ballistic missile programs through audacious thefts. In 2024, hackers associated with North Korea stole over $1.3 billion in cryptocurrency, a significant increase from the $660 million stolen in 2023. The stolen funds from cyber-attacks are suspected to have been used to enhance North Korea’s nuclear capabilities.

Apart from cybercrime, North Korea earns foreign currency through various means, including supplying weapons and troops to support the Russian invasion of Ukraine in exchange for financial gains and technological expertise. The country has also resumed welcoming international tourists, aiming to attract visitors from Russia and China while being restricted to U.S. citizens since 2017.

ByBit, the victim of this recent cyber heist, reported that an attacker took control of an ether wallet and transferred the assets to an undisclosed address. With over 60 million users globally, ByBit offers access to multiple cryptocurrencies and has sought assistance from cybersecurity experts to recover the stolen $1.5 billion.

This incident underscores the escalating cyber threats posed by North Korea and emphasizes the critical need for enhanced cybersecurity measures to safeguard digital assets and prevent such large-scale financial losses in the future.