North Korean hackers linked to £17m Lykke crypto hack; UK and Swiss authorities investigate exchange’s collapse and cybersecurity risks.
In a major cyberattack last year, Lykke, a UK-registered cryptocurrency trading platform, lost $22.8 million in Bitcoin, Ethereum, and other digital assets. According to The Telegraph, the UK government has pointed fingers at North Korea’s notorious Lazarus hacker group. In the case that this is true, it would be the largest known cryptocurrency heist on a British company by North Korea. The attack is a matter of concern regarding the increasing menace of state-sponsored cyberattacks.
Lykke Exchange Liquidated After £17M Cryoto Hack, Founder Bankrupt
Lykke was a crypto exchange headquartered in Switzerland but registered in the UK, which was founded by Richard Olsen in 2015. The platform provided free crypto trading and this has made it very popular among users. Nevertheless, the hack was so huge, that Lykke had to cease its operation. Consequently, the company experienced a very hard financial time. A judge in March ordered the liquidation of Lykke following a legal campaign by more than 70 of the affected users. Also, the founder of the company, Richard Olsen, a great-grandson of a Swiss banking legend Julius Baer, was declared bankrupt.
A report released recently by the UK Office of Financial Sanctions Implementation (OFSI) is a department of the Treasury, connected the attack to North Korean hackers. According to the report, the hack was carried out by malicious cyberactors from the Democratic People’s Republic of Korea. They stole funds from both the Bitcoin and Ethereum networks. The OFSI, however, did not reveal who its sources were except that it liaised closely with law enforcement.
Meanwhile, Whitestream, an Israeli cryptocurrency research company as well, accused the Lazarus group. They asserted that hackers laundered the stolen money via two crypto exchanges that are reputed to assist users in bypassing money-laundering restrictions.
On the other hand, not all experts agree with this conclusion. Other scientists claim that we are too soon to identify the villains. They claim that there is a need to have more evidence to ascertain the involvement of North Korea.
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Lykke Hack Under Criminal Probe in Switzerland
The country has a record of hacking into crypto exchanges in order to finance its military and nuclear projects. Analysts project that the nation has stolen billions of digital assets over the last few years. This renders the Lykke hack as a component of a bigger tendency of cyber-attacks by the mysterious state. As an example, Lazarus is associated with other well-known thefts, and it is one of the largest cybercrime players in the global arena.
In Switzerland, Lykke is currently under criminal investigation. The law enforcement is currently investigating to find out more about the hack and the movement of stolen funds. This case has also raised the issue of the dangers of cryptocurrency trading, in particular, on platforms with less reliable security measures. In addition, it has brought controversies as to how authorities can more strongly regulate and secure the crypto industry.
Ultimately, the Lykke hack is a vivid reminder of the weaknesses of the cryptocurrency world. As the UK and Swiss authorities continue with investigations, the attack is a reminder that cybersecurity must be enhanced. At present, the discussion of the role of North Korea remains controversial. However, its effects on the users of Lykke and the crypto market are unquestionable.
