Lazarus Group is Linked to the $54M Coinex Hack

  • Lazarus Group has been behind major attacks on crypto platforms since 2017.
  • Coinex temporarily halted deposits and withdrawals as a security measure.
  • The exchange plans to compensate affected users and also offer a report on the incident.

Multiple sources have revealed that the recent attack on the CoinEx cryptocurrency exchange was carried out by the North Korean hacking outfit Lazarus Group. Cybersecurity firm SlowMist and blockchain security expert ZachXBT found similarities between the CoinEx exploit and previous attacks carried out by the Lazarus Group.

ZachXBT wrote on Twitter,

It appears North Korea is also responsible for the $54 million Coinex hack from yesterday after they accidentally connected their address to the $41 million stake hack on OP and Polygon.

The sources concluded that the CoinEx hackers were connected to the $41 million hack on the cryptocurrency gambling platform Stake. Interestingly, the Federal Bureau of Investigation (FBI) recently traced the Lazarus Group to the attack on Stake.

CoinEx was hacked on Tuesday, and approximately $54 million was lost in the attack, including 231 Bitcoin, 6,559 ETH tokens, 137.128 million TRX, and numerous ERC20 tokens and stablecoins worth several million dollars.

As a security measure, CoinEx temporarily halted withdrawals and deposits and noted that affected users would be compensated. The exchange is keeping an eye on the situation and intends to release a thorough report soon.

Lazarus Group has been active since at least 2009 and has been involved in a number of well-known hacks. Some of its most prominent attacks include the 2014 attack on Sony Pictures and the 2017 WannaCry ransomware hack, as well as major assaults on cryptocurrency exchanges.

Furthermore, the hack on CoinEx joins the growing list of losses inflicted by frauds, hacks, and exploits in the crypto sector. Blockchain security firm CertiK reported that the crypto industry has lost approximately $1 billion to hacks this year alone.

The CoinEx attack is also an upsetting reminder of the flaws that still exist in the cryptocurrency ecosystem. Additionally, it highlights the demand for stronger security solutions.

There are also concerns that these hack cases could have an impact on regulatory policies as authorities continue to struggle with the security challenges of cryptocurrencies.

Lawrence Woriji Verified

Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.

Latest News