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North Korean Hackers Suspected in $70M Phemex Crypto Exchange Exploit

 

A significant cyberattack on the Singapore-based cryptocurrency exchange Phemex has resulted in the loss of over $70 million in digital assets. Blockchain security experts believe the incident may be linked to North Korean hackers. The breach was detected on Thursday, prompting Phemex to suspend withdrawals after receiving alerts from security firms about unusual activity. 

Initially, approximately $30 million was reported stolen, but the attack persisted, leading to further asset depletion. The company’s CEO, Federico Variola, confirmed that the exchange’s cold wallets remained intact and unaffected. According to cybersecurity analysts, the tactics used in this attack resemble previous high-profile exploits targeting crypto exchanges.

The perpetrators swiftly transferred various tokens across multiple blockchain networks, beginning with high-value assets such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), along with stablecoins like USDC and USDT. Since stablecoins can be frozen, the attackers quickly converted them into Ethereum before moving on to smaller, less liquid tokens. 

Researchers tracking the breach noted that hundreds of different cryptocurrencies were stolen, with attackers draining even minor altcoins. The process was reportedly carried out manually rather than through automated scripts, with assets transferred to fresh addresses before being laundered through additional layers of transactions. Experts believe the scale and coordination suggest the involvement of an experienced hacking group.  

A pseudonymous investigator known as SomaXBT.eth pointed to a North Korean-affiliated group as the likely culprit, noting similarities between this incident and previous attacks attributed to state-backed hackers. Another security analyst compared the breach to the attack on Japan’s DMM platform, which resulted in the theft of $308 million and was linked to the North Korean hacking group TraderTraitor. Data from blockchain explorers shows that the attackers utilized at least 275 transactions across Ethereum-based chains, using multiple addresses to siphon funds from networks such as Arbitrum, Base, Polygon, Optimism, and zkSync. 

Additionally, transactions were tracked across Avalanche, Binance Smart Chain, Polkadot, Solana, and Tron. A primary wallet connected to the breach handled at least $44 million in stolen funds, while notable amounts included $16 million in SOL, $12 million in XRP, and $5 million in BTC. Despite the losses, Phemex still holds roughly $1.8 billion in assets, the majority of which are in its native PT token, followed by significant holdings in Bitcoin and USDT. 

The exchange has announced that it is developing a compensation plan for affected users. As of the latest reports, activity from the attacker’s addresses appears to have ceased, with the final recorded transactions occurring around 10:00 AM ET.

Lazarus Group Exploits Chrome Zero-Day Flaw Via Fake NFT Game

 

The notorious North Korean hacking outfit dubbed Lazarus has launched a sophisticated attack campaign targeting cryptocurrency investors. This campaign, discovered by Kaspersky researchers, consists of a multi-layered assault chain that includes social engineering, a fake game website, and a zero-day flaw in Google Chrome. 

The report claims that in May 2024, Kaspersky Total Security identified a new attack chain that used the Manuscrypt backdoor to target the personal computer of an unidentified Russian citizen. 

Kaspersky researchers Boris Larin and Vasily Berdnikov believe the campaign began in February 2024. After investigating the attack further, analysts discovered that the attackers had developed a website called "detankzonecom" that seemed to be a genuine platform for the game "DeFiTankZone." 

This game reportedly combines Decentralised Finance (DeFi) elements with Non-Fungible Tokens (NFTs) in a Multiplayer Online Battle Arena (MOBA) situation. The website even offers a downloadable trial edition, adding to the look of trustworthiness. However, beneath the surface is a malicious trap. 

“Under the hood, this website had a hidden script that ran in the user’s Google Chrome browser, launching a zero-day exploit and giving the attackers complete control over the victim’s PC,” researchers noted. 

The exploit contains code for two vulnerabilities: one that enables hackers to access the whole address space of the Chrome process using JavaScript (CVE-2024-4947), and the other that allows attackers to circumvent the V8 sandbox and access memory outside the confines of the register array. 

Google addressed CVE-2024-4947, a type confusion flaw in the V8 JavaScript and WebAssembly engine, in March 2024, although it's unknown if attackers discovered it first and weaponised it as a zero-day or exploited it as an N-day flaw.

In this campaign, Lazarus has used social media sites like LinkedIn and X (previously Twitter) to target prominent players in the cryptocurrency field. With several accounts on X, they created a social media presence and actively promoted the fake game. They also hired graphic designers and generative AI to create amazing advertising material for the DeTankZone game. The group also sent carefully designed messages to interested parties pretending to be blockchain startups or game developers looking for funding.

This campaign highlights how the Lazarus Group's strategies have changed. It is crucial to be wary of unsolicited investment opportunities, particularly when they involve dubious social media promotions or downloadable game clients. In order to mitigate the risk of zero-day attacks, it is also crucial to maintain browser software, such as Chrome, updated with the most recent security fixes.

Mandiant: North Korean Hackers Are Targeting Naval Tech

 

Google Cloud's Mandiant cyber researchers have upgraded Andariel, also known as Onyx Sleet, Plutonium, and Silent Chollima, to an official advanced persistent threat (APT) group, alerting that it is targeting extremely sensitive atomic secrets and technology as North Korea continues its nuclear weapons acquisition efforts.

APT45, which has been active since 2009 and may have some connection to the Lazarus hacking operation, is characterised as having a moderate level of sophistication in terms of both scope and technology. Like many North Korean groups, its main objective is to steal money to fund the failing, isolated regime. It is most likely under the control of North Korea's Reconnaissance General Bureau (RGB) 3rd Bureau and started out as a financially motivated operator. 

What sets it apart from other groups, though, is its suspected development and use of ransomware. Mandiant provided evidence of APT45 clusters using the Maui and Shatteredglass ransomware strains, while it hasn't been able to corroborate this claim with certainty. What is known with some certainty is that APT45's interest has recently shifted to other fields, such as crop science, healthcare, and pharmaceuticals, with much of its time being devoted to military affairs, according to Mandiant. 

“Many advances in North Korea’s military capabilities in recent years can directly be attributed to APT45’s successful espionage efforts against governments and defence organisations around the world,” stated Mandiant principal analyst Michael Barnhart. “When Kim Jong Un demands better missiles, these are the guys who steal the blueprints for him.” 

APT45's actions involve a combination of publicly available hacking tools and modified and secret malware variants. Its tool library appears to be distinct from those of other North Korean APTs, although its malware shares some traits, such as code reuse, unique custom encoding, and passwords. 

FBI operation 

Over the last few weeks, Mandiant has been "actively engaged" in an organised effort, operating alongside the FBI and other US agencies, to monitor APT45's efforts to gather defence and research intelligence from the US and other nations, including the UK, France, Germany, and South Korea, as well as Brazil, India, and Nigeria.

APT45 is believed to have targeted heavy and light tanks, self-propelled howitzers, light strike and ammo supply vehicles, littoral combat ships and combatant craft, submarines, torpedoes, and unmanned and autonomous underwater vehicles; modelling and simulation technology; fighter aircraft and drones; missiles and missile defence systems; satellites, satellite communications, and related technology; surveillance and phased-array radar systems; and manufacturing, including shipbuilding, robotics, 3D printing, casting, fabrication, moulding of metal, plastics and rubber, and machining processes. More worrisomely, the group has also been tracking facilities and research, nuclear power plants, waste and storage, and uranium enrichment and processing. 

“APT45 isn’t bound by ethical considerations and have demonstrated they’re willing and agile enough to target any entity to achieve their objectives, including hospitals,” added Barnhart. “A coordinated global effort involving both public and private sectors is necessary to counter this persistent and evolving threat.”

Lazarus Hacking Group is Using Asian Firms to Launder Stolen Crypto

 

Cambodian payments company received crypto worth over US$150,000 from a digital wallet employed by North Korean hacking group Lazarus, blockchain data shows, a glimpse of how the criminal outfit has laundered funds in Southeast Asia. 

Huione Pay, based in Phnom Penh and offers currency exchange, payments and remittance services, received the crypto between June 2023 and February this year, according to the previously unreported blockchain data reviewed by Reuters. 

The crypto was transferred to Huione Pay from an anonymous digital wallet that, according to blockchain experts, was used by a hacking outfit to deposit funds stolen from three crypto firms in June and July 2023. 

The United States' Federal Bureau of Investigation said in August last year that Lazarus stole US$160 million from the crypto firms: Estonia-based Atomic Wallet and CoinsPaid; and Alphapo, registered in Saint Vincent and the Grenadines. 

They were the latest in a series of heists by Lazarus that the US said was funding Pyongyang's weapons programmes. Cryptocurrency allows North Korea to circumvent international sanctions, the United Nations has said.

The crypto might have assisted the regime pay for banned goods and services, according to the Royal United Services Institute, a London-based defence and security think tank. 

Huione Pay's board said the company had not known it "received funds indirectly" from the hacks and cited the multiple transactions between its wallet and the source of the hack as the reason it was unaware.

Rhe wallet that sent the funds was not under its management, Huione added. 

Huione Pay — whose three directors include Hun To, a cousin of Prime Minister Hun Manet — refused to elaborate why it had received funds from the wallet or provide details of its compliance policies. The firm stated Hun To's directorship does not include day-to-day oversight of its operations. The National Bank of Cambodia (NBC) said payments companies such as Huione weren't allowed to deal or trade in any cryptocurrencies and digital assets.

US blockchain analysis firm TRM Labs told Reuters that Huione Pay was one of a number of payment platforms and over-the-counter brokers that received a majority of the crypto stolen in the Atomic Wallet hack. Brokers connect buyers and sellers of crypto, offering traders a greater degree of privacy than crypto exchanges. 

TRM also said the attackers conceal their tracks by converting the stolen crypto via a complex laundering operation into different cryptocurrencies, including tether (USDT) — a so-called "stablecoin" that retains a steady value in dollars.

The GuptiMiner Attack: Lessons Learned from a Five-Year Security Breach

 

In a startling revelation, security researchers from Avast have uncovered a sophisticated cyberattack that exploited vulnerabilities in the update mechanism of eScan, an antivirus service, for a staggering five years. The attack, orchestrated by unknown hackers potentially linked to the North Korean government, highlights critical flaws in cybersecurity infrastructure and serves as a cautionary tale for both consumers and industry professionals. 

The modus operandi of the attackers involved leveraging the inherent insecurity of HTTP protocol, enabling them to execute man-in-the-middle (MitM) attacks. By intercepting the update packages sent by eScan's servers, the perpetrators clandestinely replaced genuine updates with corrupted ones containing a nefarious payload known as GuptiMiner. This insidious malware facilitated unauthorized access and control over infected systems, posing significant risks to end users' privacy and security. 

What makes this breach particularly alarming is its longevity and the level of sophistication exhibited by the attackers. Despite efforts by Avast researchers to ascertain the precise method of interception, the exact mechanisms remain elusive. However, suspicions linger that compromised networks may have facilitated the redirection of traffic to malicious intermediaries, underscoring the need for heightened vigilance and robust cybersecurity measures. 

Furthermore, the attackers employed a myriad of obfuscation techniques to evade detection, including DLL hijacking and manipulation of domain name system (DNS) servers. These tactics, coupled with the deployment of multiple backdoors and the inclusion of cryptocurrency mining software, demonstrate a calculated strategy to maximize the impact and stealth of their operations. 

The implications of the GuptiMiner attack extend beyond the immediate scope of eScan's compromised infrastructure. It serves as a stark reminder of the pervasive threat posed by cyber adversaries and the imperative for proactive defense strategies. Moreover, it underscores the critical importance of adopting industry best practices such as delivering updates over secure HTTPS connections and enforcing digital signing to thwart tampering attempts. 

For users of eScan and other potentially affected systems, vigilance is paramount. Avast's detailed post provides essential information for identifying and mitigating the threat, while reputable antivirus scanners are likely to detect the infection. Additionally, organizations must conduct thorough security assessments and implement robust cybersecurity protocols to safeguard against similar exploits in the future. 
 
Ultimately, the GuptiMiner attack serves as a wake-up call for the cybersecurity community, highlighting the pressing need for continuous innovation and collaboration in the fight against evolving threats. By learning from this incident and implementing proactive measures, we can bolster our defenses and mitigate the risk of future breaches. Together, we can strive towards a safer and more resilient digital ecosystem.

Navigating the Complex Landscape of Cyber Threats: Insights from the Sisense Breach and North Korean Tactics

 

In the intricate tapestry of cybersecurity, recent events have thrust vulnerabilities and threats into the spotlight once again. The breach of data analytics powerhouse Sisense, coupled with the emergence of novel sub-techniques utilized by North Korean threat actors, underscores the dynamic and relentless nature of cyber warfare. Let's delve deeper into these incidents and glean valuable insights for bolstering our defenses against evolving cyber threats. 

Sisense, a formidable player in the realm of business intelligence software, recently found itself ensnared in a security breach that rippled through critical infrastructure organizations. With offices sprawled across strategic locations such as New York City, London, and Tel Aviv, and a prestigious clientele including Nasdaq, ZoomInfo, Verizon, and Air Canada, Sisense's allure to cyber adversaries is palpable. 

The breach, currently under scrutiny by the U.S. Cybersecurity and Infrastructure Security Agency (CISA), serves as a stark reminder of the precarious balance between innovation and security in today's digital landscape. At the heart of the Sisense breach lie two sub-techniques that have become favoured tools in the arsenal of North Korean threat actors. The first involves the manipulation of Transparency, Consent, and Control (TCC), a foundational security protocol governing application permissions on Apple's macOS. 

Despite the robustness of security measures such as Full Disk Access (FDA) and System Integrity Protection (SIP), attackers have exhibited a remarkable ability to circumvent these controls, gaining unfettered access to macOS environments. This tactic underscores the imperative of continuous monitoring and adaptive security strategies to thwart the nefarious designs of cyber adversaries. 

The second sub-technique, colloquially known as "phantom" Dynamic Link Library (DLL) hijacking, sets its sights on Windows environments, leveraging nonexistent DLL files referenced by the operating system. By capitalizing on this loophole, threat actors such as the Lazarus Group and APT 41 can inject malicious code undetected, posing a grave threat to system integrity. 

The clandestine nature of this tactic exemplifies the ingenuity and adaptability of cyber adversaries in navigating the labyrinthine landscape of cybersecurity defenses. Mitigating these sophisticated threats necessitates a multifaceted approach that encompasses both technical fortifications and user awareness initiatives. For macOS users, safeguarding the integrity of System Integrity Protection (SIP) and exercising caution with app permissions are imperative steps in mitigating the risk of TCC manipulation. 

In Windows environments, proactive monitoring, robust application controls, and preemptive measures to block remote DLL loading are indispensable in thwarting phantom DLL attacks. Moreover, fostering a culture of collaboration and information sharing between industry stakeholders and government agencies is paramount in confronting the ever-evolving threat landscape. 

By pooling resources, sharing threat intelligence, and adopting a unified front against cyber adversaries, organizations can amplify their collective resilience and fortify their defenses against emerging threats. 

In conclusion, the Sisense breach and the intricate tactics employed by North Korean threat actors serve as poignant reminders of the relentless onslaught of cyber threats. By remaining vigilant, proactive, and collaborative, organizations can navigate the turbulent waters of cybersecurity with resilience and fortitude, safeguarding their digital assets and preserving the integrity of our interconnected world.

The Week of Crypto Platform Breaches: Prisma Finance Incident Highlights

 

The past week witnessed a series of bewildering events in the realm of cryptocurrency, marked by breaches on two prominent platforms that left the crypto community grappling with perplexing motives and unexpected outcomes. 

The first incident unfolded on Tuesday evening when the Munchables blockchain-based game fell victim to an attack, resulting in the theft of approximately $62 million worth of cryptocurrency. Initial speculation pointed towards North Korea-linked hackers, given the country's history of targeting cryptocurrency platforms for financial gain. However, the situation took an unexpected turn when the alleged perpetrator voluntarily returned the stolen funds without any ransom demands. 

In a surprising twist, Munchables shared that the individual behind the attack had relinquished access to the private keys containing the stolen funds, expressing gratitude for their cooperation. Despite this resolution, questions lingered about the circumstances surrounding the incident, including the attacker's identity and motives, prompting calls for enhanced security measures within the crypto community. Shortly thereafter, another breach occurred on Thursday evening, this time affecting Prisma Finance, a popular decentralized finance (DeFi) platform, which suffered a loss of approximately $11.6 million. 

However, the aftermath of this breach was marked by cryptic messages from the hacker, who claimed the attack was a "white hat" endeavour aimed at highlighting vulnerabilities in the platform's smart contracts. The hacker, whose identity remained undisclosed, reached out to Prisma Finance seeking to return the stolen funds and engaging in a discourse about smart contract auditing and developer responsibilities. 

Despite the hacker's apparent altruistic intentions, the incident underscored the importance of rigorous security measures and comprehensive audits in the DeFi space. Prisma Finance later released a post-mortem report detailing the flash loan attack that led to the breach, shedding light on the exploitation of vulnerabilities in the platform. The report emphasized ongoing efforts to investigate the incident and ensure the safety of users' funds, highlighting the collaborative nature of the crypto community in addressing security breaches. 

These breaches come against the backdrop of heightened scrutiny of cyberattacks on cryptocurrency platforms, with a recent United Nations report identifying North Korean hackers as key perpetrators. The report highlighted a staggering $3 billion in illicit gains attributed to North Korean cyberattacks over a six-year period, underscoring the persistent threat posed by state-sponsored hackers in the crypto space. 

As the investigation into these breaches continues, the crypto community remains vigilant, emphasizing the importance of robust security measures and proactive collaboration to safeguard against future threats. While the motives behind these breaches may remain shrouded in mystery, the incidents serve as a stark reminder of the ever-present risks associated with digital assets and the imperative of maintaining heightened security protocols in the evolving landscape of cryptocurrency.

Japan Blames Lazarus for PyPi Supply Chain Attack

 

Japanese cybersecurity officials issued a warning that North Korea's infamous Lazarus Group hacking group recently launched a supply chain attack on the PyPI software repository for Python apps. 

Threat actors disseminated contaminated packages with names like "pycryptoenv" and "pycryptoconf" that are comparable to the real "pycrypto" encryption tools for Python. Developers who are duped into installing the malicious packages onto their Windows workstations are infected with a severe Trojan called "Comebacker.” 

"The malicious Python packages confirmed this time have been downloaded approximately 300 to 1,200 times," Japan CERT noted in a warning issued late last month. "Attackers may be targeting users' typos to have the malware downloaded.” 

Comebacker is a general-purpose Trojan that can be used to deliver ransomware, steal passwords, and infiltrate the development pipeline, according to analyst and senior director at Gartner Dale Gardner. 

The trojan has been used in multiple attacks linked to North Korea, including one against a npm software development repository. 

Impacting Asian Developers

Since PyPI is a centralised service with a global reach, developers worldwide should be aware of the most recent Lazarus Group campaign. 

"This attack isn't something that would affect only developers in Japan and nearby regions," Gardner explains. "It's something for which developers everywhere should be on guard." 

Several experts believe non-native English speakers may be more vulnerable to the Lazarus Group's most recent attack. Due to communication issues and limited access to security information, the attack "may disproportionately impact developers in Asia," stated Taimur Ijlal, a tech specialist and information security leader at Netify. 

According to Academic Influence's research director, Jed Macosko, app development groups in East Asia "tend to be more tightly integrated than in other parts of the world due to shared technologies, platforms, and linguistic commonalities." He believes intruders may be looking to take advantage of regional ties and "trusted relationships." 

Small and startup software businesses in Asia often have lower security budgets than their Western counterparts, according to Macosko. "This means weaker processes, tools, and incident response capabilities — making infiltration and persistence more attainable goals for sophisticated threat actors.” 

Cyber Defence

Protecting application developers from software supply chain threats is "difficult and generally requires a number of strategies and tactics," Gartner's Gardner explained. 

Developers should use extra caution and care while downloading open source dependencies. Given the amount of open source used today and the pressures of fast-paced development environments, it's easy for even a well-trained and vigilant developer to make a mistake, Gardner added. 

Gardner recommends using software composition analysis (SCA) tools to evaluate dependencies and detect fakes or legitimate packages that have been compromised. He also suggests "proactively testing packages for the presence of malicious code" and validating packages using package managers to minimise risk.