Crypto Hack Drains $238M In Bitcoin, Lazarus Group Involved?

A massive crypto security breach was recorded on August 19 led to the theft of $238 million worth of Bitcoin, causing widespread concern among enthusiasts. The incident was initially identified by Web3 sleuth ZachXBT, who exposed the crypto hack details on X (formerly Twitter). Speculation swirled around the involvement of the infamous Lazarus Group in this heist.

$238M Bitcoin Stolen In Latest Crypto Hack

According to ZachXBT’s research, the victim lost 4,064 Bitcoin, worth approximately $238 million, in a suspicious transfer on Monday. The transaction hash associated with the theft, 4b277…, revealed that the stolen funds were quickly transferred across various platforms. These include ThorChain, eXch, KuCoin, ChangeNow, crypto mixer Railgun, and Avalanche Bridge.

As of now, the cause of the crypto hack remains unclear. The crypto community is questioning whether the Lazarus Group, a North Korean cybercriminal organization known for high-profile crypto hacks, might be involved. However, crypto sleuth ZachXBT dismissed these notions. They stated, “Not this time I think (behavior is a bit different).”

As time passed more details emerged regarding the victim. Lookonchain, a blockchain tracking platform, revealed that the victim must have been a Genesis Trading creditor. It received 642.4 BTC worth $37.73 million from the Genesis bankruptcy distribution wallet on August 2. However, the entire BTC stash held by the victim along with the Genesis repayment was stolen.

Recently, the Pump Fun scam also resulted in losses of nearly $30 million. Furthermore, the first half of 2024 was challenging for the crypto industry, which has seen a surge in high-profile hacks and security breaches.

According to data from Peck Shield Alert, the losses from crypto scams and hacks in 2024 have already exceeded $1.5 billion. This indicates a staggering 293% increase compared to the same period in 2023 when total losses amounted to $480 million.

Of the funds lost in 2024, only $319 million has been recovered. Decentralized finance (DeFi) protocols have been the primary targets for attackers, accounting for 59% of the total value stolen. More than 200 crypto hack incidents have been recorded, affecting over 20 public chains.

Latest Hacks In 2024

The latest Bitcoin theft is not the only significant crypto hack in 2024. Recently, the Ronin Network and Nexera were both victims of substantial breaches, with $12 million and $3 million stolen, respectively. However, in a rare turn of events, the funds lost in the Ronin bridge attack were fully recovered.

Nexera also managed to recover most of the stolen funds, with only $400,000 still unaccounted for. Furthermore, in July 2024, WazirX, a prominent cryptocurrency exchange, suffered a major hack. It resulted in the loss of $230 million worth of assets, including Ethereum, Shiba Inu, Pepe Coin, and Polygon.

In a recent update, WazirX assured its users that its systems and laptops were not compromised during the attack. This conclusion came after a thorough forensic investigation by Mandiant Solutions, a Google subsidiary.

However, the report suggested that the breach likely stemmed from issues with its former infrastructure and custody partner, Liminal. Nonetheless, Liminal denied these claims, raising questions about the security measures in place at WazirX.

Additionally, Binance CEO Richard Teng recently detailed the exchange’s success in averting potential losses exceeding $2.4 billion due to crypto scams and frauds, benefiting over 1.2 million users worldwide. This achievement, spanning from January to July 2024, was made possible through the exchange’s robust risk management and surveillance systems.