FBI Identifies North Korea as the Orchestrator of a Record-breaking $1.5 billion Cryptocurrency Heist

The U.S. Federal Bureau of Investigation (FBI) has identified North Korea as the orchestrator of a record-breaking $1.5 million cryptocurrency heist from Dubai-based crypto exchange Bybit.

The U.S. Federal Bureau of Investigation (FBI) has identified North Korea as the perpetrator of a record-breaking $1.5 billion cryptocurrency theft from Dubai-based crypto exchange Bybit.

The attack, which occurred on February 19, is the largest digital asset theft ever recorded.

In a statement on Thursday, the FBI said the stolen funds are being quickly laundered and converted into Bitcoin and other virtual assets, dispersed across thousands of blockchain addresses.

The agency attributed the attack to a North Korean cybercrime group operating as "TraderTraitor."

"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," the FBI said. "It is expected these assets will be further laundered and eventually converted to fiat currency."

The heist has brought renewed attention to state-sponsored cybercrime and its impact on the cryptocurrency market.

North Korea has been linked to several high-profile cyberattacks in recent years, with digital asset theft a key revenue source for the regime.

In response to the breach, Bybit has launched a large-scale effort to track and recover the stolen assets. The company has offered a bounty for information leading to the retrieval of the funds and implemented an online system to trace and freeze illegitimate transactions.

Ben Zhou, Bybit's chief executive, emphasized the company's commitment to transparency in combating cybercrime.

"We are taking a stand to ensure that every transaction is visible and every hacker is held accountable," Zhou said. "Our multi-pronged offensive is a clear message: if you steal, you will be found, and justice will be swift."

The FBI has advised cryptocurrency platforms and financial institutions to be vigilant for any suspicious transactions linked to the stolen funds.

The agency also warned that the digital assets could be channeled through illicit means before being converted into government-issued currency.

The incident adds to a series of cyberattacks attributed to North Korean state-sponsored hacking groups. U.S. authorities are closely monitoring developments as efforts to disrupt the laundering process and mitigate further security risks within the cryptocurrency sector continue.