In crypto news, the Federal Bureau of Investigation (FBI) has put on radar, six Bitcoin wallets affiliated with North Korea’s Lazarus Group – a notorious hacking group known for its major crypto-centric exploits. With these wallets purportedly possessing about 1,580 BTC (equivalent to around $40 million), the FBI is urging crypto companies to up their vigilance and monitor blockchain data for any suspicious transactions.
Seemingly, Lazarus Group has brought in this crypto wealth through a series of successful hacks over the past year. The intriguing facet here is that, although this group — and others alike — have pilfered billions from the crypto market, public-ledger technology — the backbone of cryptocurrencies — is making it increasingly challenging for these culprits to launder their ill-gotten crypto assets. This is primarily because transactions on the blockchain can be tracked and, if necessary, frozen.
Over the years, this North Korean group has been continually engaging in a number of crypto exploits, amassing billions worth of digital assets. In fact, a recent report from TRM Labs suggests that their booty since 2018, totals nearly $2 billion. It’s worth noting, the year 2022 was reportedly their most prosperous, with the group ensnaring around $1 billion worth of crypto assets.
Spearheading some of the largest decentralized finance (DeFi) exploits, the hacking outfit was reportedly behind the infamous hacks of Harmony’s Horizon bridge and Sky Mavis’ $625 million attack on an Ethereum-linked sidechain Ronin Bridge, last year. Whilst code vulnerabilities in platforms and protocols have created the grounds for such attacks, the blockchain’s transparency presents a hurdle for these attackers when attempting to move their spoils.
Various law enforcement agencies, including the FBI, along with crypto companies, have partnered on a number of occasions to freeze funds linked to such exploits. For example, reports reveal that in February this year, Huobi and Binance froze around $1.4 million worth of crypto assets tied to North Korea. Similarly, some $63 million linked to the Harmony Bridge hack was consequentially frozen by crypto exchanges.
In retrospect, while hacking groups like Lazarus continue to seize and hoard crypto wealth via the exploitation of code vulnerabilities, blockchain technology counteracts in kind, hindering their ability to maneuver their ill-gained capital. Hence, striking a delicate balance between the overwhelming potential of cryptocurrencies and their probable misuse. It prompts us to question: Can we improve the protocols to dilute vulnerabilities while maintaining the transparency of blockchain?
Source: Cointelegraph
