The FBI has made a public announcement pointing an accusing finger at the TraderTraitor group, a North Korean-based group of cybercriminals for the Bybit crypt hack – the group is actively trying to launder the funds they stole from a Dubai-based firm.
According to a statement by the FBI, the TraderTraitor hackers employed sophisticated means to facilitate the Bybit crypto hack. The spy agency is now asking businesses such as exchanges, RPC node operators, and DeFi services to block any transactions they believe could be linked to the stolen funds to prevent the hackers from cashing out and furthering their illicit activities.
TraderTraitor Group Used Sophisticated Processes
The Bybit crypto hack that took place earlier this month targeting one of the world’s leading cryptocurrency exchanges represents another heist associated with groups of hackers based in North Korea; the TraderTraitor group now joins another notorious group called the Lazarus Group. According to the US spy agency, the group stole:
“Through the dissemination of cryptocurrency trading applications modified to include malware that facilitates cryptocurrency theft.”
Issuing a public service announcement, the FBI further said:
“TraderTraitor actors are proceeding rapidly and have converted some of the stolen assets to Bitcoin and other virtual assets dispersed across thousands of addresses on multiple blockchains […] it is expected these assets will be further laundered and eventually converted to fiat currency.”
Bybit Crypto Hack Biggest in History
Besides joining the ranks of several other heists carried out by North Korean groups, the Bybit crypto hack has become the most significant crypto heist ever. The heist has bypassed the Ronin Network ($625M), Poly Network ($611M), and BNB Bridge ($566M) attacks by far. The hackers masked the signing interface and compromised Bybit’s ETH cold wallet, allowing them to redirect funds to an unknown address. The company’s statement on the Bybit crypto attack explained thus:
“Bybit detected unauthorized activity involving one of our ETH cold wallets. The incident occurred when our ETH multisig cold wallet executed a transfer to our warm wallet. Unfortunately, this transaction was manipulated through a sophisticated attack that masked the signing interface, displaying the correct address while altering the underlying smart contract logic […]. As a result, the attacker was able to gain control of the affected ETH cold wallet and transfer its holdings to an unidentified address.”
Crypto Businesses to be Held Responsible
Bybit’s security team reportedly used blockchain forensic experts and other partners to investigate the breach. The company has taken steps to assure its partners and users that the other cold wallets were secure and that their funds were safe, meaning that operations continue without disruption.
As a result of the hack by the TraderTraitor group, the FBI is now turning its heat on crypto businesses. It is asking them to carefully monitor their transactions, which would include blocking any suspect wallets. The spy agency now says they could enlist crypto businesses that failed to act accordingly as unwitting accomplices in the global money laundering operations.
Conclusion
The FBI and players within the crypto industry believe that the TraderTraitor group and the Lazarus Group are state-sponsored groups responsible for some of the largest crypto heists in history. With the FBI now facing crypto businesses such as DeFi platforms and exchanges, it will be a waiting game to see whether the threat will do anything to prevent similar attacks in the future.
Frequently Asked Questions (FAQs)
What Is a Crypto Hack?
A crypto hack is one of several forms of theft that results in cryptocurrency being stolen.
What Crypto Platforms have been hacked?
There have been several crypto hacks in the history of crypto targeting various crypto platforms.
Has Bitcoin been hacked yet?
There are no reports of Bitcoin’s blockchain and network being hacked. However, service providers, wallets, and applications are all vulnerable and have been hacked.
Can a crypto hacker be traced?
Tracing crypto hackers is possible despite these challenges with the right tools and expertise.
Appendix: Glossary of Key Terms
Cryptocurrency exchange: A platform or marketplace where users can buy, sell, and trade cryptocurrencies, facilitating the exchange of digital assets.
Crypto hack: Cybercriminals use a victim’s computer or device to mine cryptocurrency without their knowledge or consent, often to steal digital currency.
Cold wallet: A cryptocurrency wallet that stores private keys offline, meaning it’s not connected to the internet.
Hot wallet: A digital wallet connected to the internet offers convenience and easy transaction access but is more vulnerable to online security threats.
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