This week, cyber attackers set their sights on Stake.com, an online casino game and sports betting platform. They successfully made away with around $41 million in cryptocurrencies. The FBI has pinpointed North Korea and its infamous state-supported hacking group, the Lazarus Group, as the responsible parties.
According to Edward Craven, co-founder of Stake.com, the incident was characterized as a "sophisticated breach." It exploited a specific service employed by the casino for authorizing cryptocurrency transactions. Despite the significant amount stolen by the state-affiliated hackers, particularly given the ongoing downturn in cryptocurrency prices, Craven affirmed that Stake.com would persevere in its operations.
“The FBI has confirmed that this theft took place on or about September 4, 2023, and attributes it to the Lazarus Group (also known as APT38) which is comprised of DPRK cyber actors,” the agency said in a press release.
The group has been active since 2010 and its primary interest lies in South Korean entities, The group engages in activities ranging from espionage to disruption and even outright destruction. Additionally, they have a track record of pursuing financial gains through cyber operations, which includes targeting cryptocurrency exchanges.
In 2019, North Korea's Lazarus Group gained infamy and was sanctioned by the U.S. government. This hacking collective also recognized as APT38, has been responsible for a series of high-profile cyber intrusions, amassing well over a billion dollars in ill-gotten gains over the years.
Just this year alone, the FBI reports that Lazarus Group has purloined more than $200 million in cryptocurrencies. Given the traceable nature of blockchain, authorities possess information on the destination addresses of these funds. The FBI is strongly advising individuals to exercise caution when engaging in transactions linked directly or indirectly to these flagged addresses.
Speculations from experts suggest that North Korea may be channeling the acquired cryptocurrencies into its nuclear weapons program. This month, Kim Jong-un is scheduled to visit Russia, where discussions are anticipated to revolve around the potential supply of weapons to support Vladimir Putin's ongoing invasion of Ukraine. U.S. officials have cautioned that such actions will come with consequences for the nation.