FBI: North Korea's "TraderTraitor" Laundered Stolen Crypto

The agency released a public service announcement on Wednesday, February 26, referring to the malicious attack as “TraderTraitor.”

The Federal Bureau of Investigation (FBI) has named North Korea as the perpetrator behind the recent hack on Bybit crypto exchange.

The agency issued a public service announcement on Wednesday, February 26, highlighting the malicious activity as “TraderTraitor.”

FBI: North Korea’s ‘TraderTraitor’ Laundered Stolen Crypto

According to the FBI, TradeTraitor rapidly converted a portion of the stolen assets into Bitcoin and other cryptocurrencies, routing them to thousands of wallet addresses across multiple blockchains. The agency anticipates that the hacker will strive to launder and eventually convert the stolen digital assets into fiat.

The FBI's statement sheds light on the recent hack of Bybit, which several analysts described as the largest crypto exchange hack in history. The well-known exchange fell victim to an attack last Friday when a hacker gained control of an Ether wallet, stealing around $1.5 billion in digital assets by transferring them to an undisclosed wallet.

Hack Pushed Crypto Into Bearish Zone

The hack of Bybit had a significant impact on the cryptocurrency market, leading to substantial selloffs in the top cryptocurrencies and contributing to a FUD atmosphere. The incident sparked a wave of speculation within the crypto community, with several analysts suspecting the notorious North Korea-based Lazarus Group to be behind the malicious activity.

However, the FBI's statement has now revealed the identity of the culprits. Despite this, it seems that the revelation had little impact on market dynamics, as the crypto market continued to face bearish pressure despite slight attempts at recovery.

Bitcoin Price Recovers After Hack-Induced Slump

Bitcoin was trading at $85,926 at the time of writing, recovering from a deeper slump that saw its price fall to $82,133, the lowest point since mid-November 2024.

The flagship crypto declined by 17% following last weekend’s market crash. However, it is showing signs of recovery after gaining 3.32% in early hours of trading on Wednesday.