Cryptocurrency News

North Korea’s Lazarus Group responsible for $55M CoinEx hack: Report

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The attack on crypto exchange CoinEx which drained at least $55 million was carried out by the North Korean hacker group Lazarus, according to blockchain security firm SlowMist and on-chain investigator ZachXBT. The hacker group was identified after they mistakenly connected their address to the recent Stake and Optimism hacks. 

On Sept. 12, CoinEx saw large outflows of funds to an address without any prior history. Security experts immediately suspected that the exchange was breached, with initial estimates reaching approximately $27 million. At the time of writing, security firm SlowMist noted that the losses from the exploit have reached more than $55 million. 

After the hack, CoinEx Global assured users that their assets were secure and that affected parties would “receive 100% compensation” for any losses due to the hack. Apart from this, the exchange temporarily suspended deposits and withdrawals for added security. The exchange continues to monitor the situation and promised a comprehensive report about the incident to be published in the near future.

Based on their on-chain behavior, the hackers responsible for the hack appear to be connected to the recent $41 million hack on the crypto gambling site Stake. On Sept. 7, the United States Federal Bureau of Investigation (FBI) concluded that the attack on Stake was performed by North Korea’s Lazarus Group.

Related: Security platforms warn about hidden phishing and wallet drainer links

The recent attack on CoinEx Global adds huge figures to the mounting losses due to exploits, hacks and scams within the crypto space. On Sept. 1, cybersecurity firm CertiK reported that as of August 2023, almost $1 billion had already been lost due to such incidents from January this year. In August alone, around $45 million was taken from various malicious attacks.

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