The United States, Japan, and South Korea jointly blamed North Korea’s state-backed hacking group, Lazarus, for WazirX hack.
On January 14, the United States, Japan, and South Korea jointly blamed North Korea’s state-backed hacking group, Lazarus, for a series of cyberattacks targeting crypto platforms worldwide. Among these was the high-profile July 2024 breach of WazirX, India’s largest crypto exchange, which resulted in a staggering $235 million loss.
This joint statement confirms earlier findings by blockchain analytics firm Elliptic, which also blamed North Korea for the exchange’s hack.
In their statement, the three governments highlighted the broader threat posed by North Korea’s cyber activities, noting their impact on the global financial system. The statement identified North Korea’s cyber program as a direct threat to international financial integrity and security.
The WazirX hack saw the compromise of one of its multisignature wallets, which led to a loss of over 45% of its total crypto holdings. Soon after, the exchange halted all trading and platform operations. The incident spurred industry-wide introspection. In November 2024, the exchange’s co-founder, Nischal Shetty, announced plans to resume operations and compensate affected users by February 2025.
Notably, the WazirX hack was part of a larger trend that exposed vulnerabilities in the cryptocurrency sector. According to a May report by the United Nations Security Council, North Korea-linked cryptocurrency hacks have stolen over $3 billion between 2017 and 2023. In 2023 alone, the panel investigated 17 crypto heists, which were valued at over $750 million.
The WazirX breach ranked as the second-largest attack in 2024, surpassed only by a $308 million heist targeting Japan’s DMM Bitcoin exchange in May. Further, multiple law enforcement agencies, including the FBI and Japan’s National Police Agency, have confirmed that this attack was also carried out by North Korea-affiliated hackers.
Interestingly, the three governments also linked the Lazarus Group to other significant crypto thefts, including attacks on Upbit ($50 million loss), Radiant Capital ($50 million loss), and Bahrain-based Rain Management ($16.13 million loss). Analysts estimate that over 50% of North Korea’s foreign currency earnings in 2024 stemmed from such malicious cyber activities.
To counter North Korea’s cyber aggression, the US, Japan, and South Korea are intensifying their collaboration. As per the announcement, their joint efforts include imposing sanctions on DPRK cyber actors, working to recover stolen assets, and enhancing cybersecurity capabilities across the Indo-Pacific.
With the growing sophistication of state-sponsored hacking groups, the need for robust cybersecurity measures in the crypto sector has never been more pressing.
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With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.
