The Lazarus Group, infamous for high-profile cyberattacks, gained notoriety for hacking Sony Pictures in retaliation for the 2009 film The Interview, which mocked North Korean leader Kim Jong Un. Their recent activities, however, focus on cryptocurrency theft, leveraging advanced social engineering techniques and malicious code.
Social Engineering and the Ginco Incident
In late March 2024, a TraderTraitor operative posing as a recruiter contacted an employee of Ginco, a Japanese cryptocurrency wallet software company, via LinkedIn. Disguised as part of a pre-employment process, the operative sent a malicious Python script under the guise of a coding test. The employee unknowingly uploaded the script to their GitHub account, granting the attackers access to session cookie information and Ginco’s wallet management system.
The attackers intercepted legitimate transaction requests from DMM employees by maintaining this access. This led to the theft of over 4,500 bitcoins, valued at $308 million. The funds were traced to accounts managed by the TraderTraitor group, which utilized mixing and bridging services to obfuscate the stolen assets.
North Korea's Financial Strategy and Cryptocurrency Exploitation
With international sanctions severely restricting North Korea's access to global financial systems, the regime increasingly relies on cybercrime and cryptocurrency theft for revenue generation. Due to their decentralized and pseudonymous nature, cryptocurrency presents a lucrative target for laundering stolen funds and bypassing traditional banking systems.
Chainalysis Findings
Blockchain intelligence firm Chainalysis attributed the DMM Bitcoin hack to North Korean actors. The attackers exploited weaknesses in the platform's infrastructure to perform unauthorized withdrawals. The stolen cryptocurrency was routed through multiple intermediary addresses and processed via the Bitcoin CoinJoin mixing service to conceal its origins. Portions of the funds were further transferred through various bridge services before being channelled to HuiOne Guarantee, a website linked to the Cambodian conglomerate HuiOne Group, a known facilitator of cybercrime.
Additional Findings by AhnLab Security Intelligence Center
The AhnLab Security Intelligence Center (ASEC) has reported another North Korean threat actor, Andariel — part of the Lazarus Group — deploying a backdoor known as SmallTiger. This tool has been used in campaigns parallel to those executed by TraderTraitor, highlighting the group's continued evolution in cybercrime tactics.
The coordinated alert from international agencies underscores the urgent need for enhanced cybersecurity measures within the cryptocurrency industry to counter sophisticated threats like those posed by the Lazarus Group and its affiliates.
The cryptocurrency industry has witnessed tremendous growth, Ether and Bitcoin are game changers. The rise has led to financial instruments like ETFs (Exchange-traded funds) that allow investors access without owning them directly. But, with the increase of crypto technologies, security questions have also surfaced.
The United States FBI recently warned about a major cybersecurity threat from North Korean hackers targeting cryptocurrency and web3 sectors. Billions of dollars go into these crypto ETFs, but investors shouldn’t be hasty to think their assets are secure.
Lazarus (a North Korean state-sponsored group) is no stranger to the cryptocurrency market and is allegedly responsible for various attacks against famous exchanges and blockchain protocols. Officials are concerned about hackers attacking crypto-backed ETFs by targeting the underlying assets.
North Korean hackers are using advanced engineering methods to fool employees at decentralized finance (DeFi) and cryptocurrency firms. The hackers impersonate high-profile figures within an organization and or make specific scenarios based on the target’s position, business interests, or skills to get in their good books.
“The actors may also impersonate recruiting firms or technology companies backed by professional websites designed to make the fake entities appear legitimate. Examples of fake North Korean websites can be found in affidavits to seize 17 North Korean domains, as announced by the Department of Justice in October 2023,” the FBI warned.
The FBI has warned against storing private cryptocurrency wallet data on web-connected devices as they may be victims of hacking attacks. If these requests come from unfamiliar sources, organizations should be careful when using non-standard software or applications on their network.
North Korean hackers have already stolen sensitive data from Bitcoin companies by using fake job ads. The FBI’s warning is a wake-up call for web3 and cryptocurrency firms to advance their cybersecurity systems and be careful against these rising attacks.
“The actors usually attempt to initiate prolonged conversations with prospective victims to build rapport and deliver malware in situations that may appear natural and non-alerting. If successful in establishing bidirectional contact, the initial actor, or another member of the actor’s team, may spend considerable time engaging with the victim to increase the sense of legitimacy and engender familiarity and trust,” the FBI reports.
According to a study conducted by Elastic Security Labs, the malware, dubbed as ‘KandyKorn’ is a sophisticated backdoor that could be used to steal data, directory listing, file upload/download, secure deletion, process termination, and command execution.
At first, the attackers used Discord channels to propagate Python-based modules by pretending to be active members of the community.
Apparently, the social engineering attacks pose as an arbitrage bot intended to generate automatic profits by coercing its members into downloading a malicious ZIP archive called “Cross=platform Bridges.zip.” However, there are 13 malicious modules that are being imported by the file to work together in order to steal and alter the stolen information.
The report reads, “We observed the threat actor adopting a technique we have not previously seen them use to achieve persistence on macOS, known as execution flow hijacking.”
Users of Unibot were notified by blockchain analytics company Scopescan about an ongoing hack, which was subsequently verified by an official source:
“We experienced a token approval exploit from our new router and have paused our router to contain the issue.” Later, Unibot guaranteed that it would compensate all the victims who lost their funds in the exploit.
Lazarus Group/ Lazarus is a North Korean state-sponsored cyber threat group, linked to the Reconnaissance General Bureau that operates out of North Korea. As part of a campaign called Operation Blockbuster by Novetta, the group, which has been operating since at least 2009, is said to have been behind the devastating wiper attack against Sony Pictures Entertainment in November 2014. The malware that Lazarus Group uses is consistent with other known campaigns, such as DarkSeoul, Operation Flame, Operation 1Mission, Operation Troy, and Ten Days of Rain.
However, in certain definitions of the North Korean group, security researchers apparently report all North Korean state-sponsored cyber activities under the term Lazarus Group instead of tracking clusters or subgroups like Andariel, APT37, APT38, and Kimsuky.
The crypto industry remains a main target for Lazarus, with a primary motivation of profit rather than espionage, which is their second primary operational focus.
The fact that KandyKorn exists proves that macOS is well within Lazarus's target range and highlights the threat group's amazing ability to create subtle and sophisticated malware specifically designed for Apple devices.
The North Korean cyberespionage group has targeted Mashinostroyeniya, a rocket design based in Reutov, Moscow. The hackers group, code-named ScarCruft and Lazarus installed covert digital backdoors into the system at NPO Mashinostroyeniya and was located by Reuters’ James Pearson and Christopher Bing.
However, it has not been made clear as to what data was acquired in the breach. In the following month, the digital break-in Pyongyang introduced several new developments in its banned ballistic missile program, while is not clear if this was in any regards to the breach.
Moreover, no official confirmation has been provided of the espionage by NPO Mashinostroyeniya officials.
The company, commonly known as NPO Mash, specialized in developing hypersonic missiles, satellite technologies and new-generation ballistic armaments. The company was prominent in the Cold War as a premier satellite maker for Russia's space program and as a provider of cruise missiles.
According to experts, the hackers garnered interest in the company after it underlined its mission to develop an Intercontinental Ballistic Missile (ICBM), capable of bringing catastrophe to the mainland United States.
Apparently, the hackers acquired access to the company’s documents and leaked them between 2021, and May 2022. Following this, the IT engineers detected the cybercrime activities, the news agency reported.
According to Tom Hegel, a security researcher with U.S. cybersecurity firm SentinelOne, following the hack, the hackers gained access to the company’s IT environment, which enabled them to read email traffic, jump between networks, and extract data. "These findings provide rare insight into the clandestine cyber operations that traditionally remain concealed from public scrutiny or are simply never caught by such victims," Hegel said.
Digging further into the findings, Hegel’s team of security analysts discovered that one of the NPO Mash IT employees unintentionally exposed his company's internal communications while attempting to investigate the North Korean attack by uploading evidence to a secret portal used by cybersecurity researchers worldwide.
Experts speculate that the data stolen by the hacker group is of great importance, however, it will take a lot more information, effort and expertise for them to actually develop a missile.
"That's movie stuff[…]Getting plans won't help you much in building these things, there is a lot more to it than some drawings," Hegel further added.
ESET researchers have found one of the payloads of the Wslink downloader that experts previously discovered in 2021. The payload is called WinorDLL64 based on its filename. Wslink, a loader for Windows binaries, is different from other loaders, it runs as a server and executes retrieved modules in memory.
As the name suggests, a loader would serve as a tool to launch the payload or the malware into the infected system. Experts haven't identified the initial Wslink compromise vector yet. The WinorDLL64 is delivered by the Wslink malware downloader. These tools may be linked with the infamous North Korea-based APT group Lazarus.
ESET researchers have found one of the payloads of the Wslink downloader that experts previously discovered in 2021. The payload is called WinorDLL64 based on its filename. Wslink, a loader for Windows binaries, is different from other loaders, it runs as a server and executes retrieved modules in memory. As the name suggests, a loader would serve as a tool to launch the payload or the malware into the infected system. Experts haven't identified the initial Wslink compromise vector yet. The WinorDLL64 is delivered by the Wslink malware downloader. These tools may be linked with the infamous North Korea-based APT group Lazarus.
WinorDLL64 is a backdoor that was first found by cybersecurity experts in 2019. It is a 64-bit variant of the original Winor backdoor, which the Lazarus group used in its previous attacks. WinorDLL64 is built to be highly deceptive, which makes it difficult for experts to identify.
WinorDLL64 is usually distributed via spear-phishing emails or malicious downloads. Once it compromises a system, it makes a backdoor that lets threat actors remotely gain entry and control the attacked system. It is built to avoid detection by using a number of techniques, this includes encrypting the communication process and concealing its sight on the system.
WeLiveSecurity by ESET reports "active since at least 2009, this infamous North-Korea aligned group is responsible for high-profile incidents such as both the Sony Pictures Entertainment hack and tens-of-millions-of-dollar cyberheists in 2016, the WannaCryptor (aka WannaCry) outbreak in 2017, and a long history of disruptive attacks against South Korean public and critical infrastructure since at least 2011. US-CERT and the FBI call this group HIDDEN COBRA."
WinorDLL64 is a highly advanced backdoor that allows threat actors full control over the compromised system. Threat actors can steal important info, add malware, and do various malicious activities while evading detection. The dangers associated with WinorDLL64 are consequential, especially for companies that depend on sensitive data or critical systems.
In the case of malware, safety is fundamental when it comes to defending against WinorDLL64. Companies can take various measures to decrease the chance of compromise. This includes:
Familiarizing employees with the dangers of phishing emails and inspiring them to be careful while opening attachments or suspicious links.
Maintaining software and security systems up-to-date to make sure all vulnerabilities are patched.
Enforcing two-factor authentication and other login controls to reduce the damage from cyberattacks.
Daily monitoring of network activity and system logs for any hints of malicious behavior.
Using a trusted anti-malware solution that can find and stop WinorDLL64 and various kinds of malware.
In summary, we can say that WinorDLL64 is a highly effective backdoor that is a significant threat to companies. It is believed to be the work of the North Korean hacking group, Lazarus, and is designed to evade detection and provide attackers with complete control over an infected system. Organizations can take various measures to defend against WinorDLL64, this includes educating the workplace, having the latest software, enforcing access controls, checking network activity, and using anti-malware software. With a proactive approach to cybersecurity, companies can lower the threat of a successful cyber attack and safeguard their precious systems and data.
A recent series of compromises that exploited unpatched Zimbra devices was an operation sponsored by the North Korean government and aimed to steal intelligence from a collection of private and public medical and energy sector researchers.
Analysts with W labs in a new report explained that due to an overlap in techniques, and thanks to a mess up by one of the threat actors, they attributed the recent series of cyber incidents against unpatched Zimbra devices to the Lazarus group, a well-known cybercriminal group sponsored by the North Korean government.
A joint report by NSA and Central Security service said "DPRK cyber actors have been using cryptocurrency generated through illicit cybercrime activities to procure infrastructure such as IP addresses and domains. The actors intend to conceal their affiliation and then exploit common vulnerabilities and exposures (CVE) in order to gain access and escalate privileges on targeted networks to perform ransomware activities. Recently observed CVEs include remote code execution in the Apache Log4j software library (also known as "Log4Shell") and remote code execution in various SonicWall appliances."
Lazarus ran this campaign and other likewise intelligence-gathering operations till the end of 2022. The experts have named the campaign "No pineapple" after an error message created by the malware during their investigation. The threat actors quietly stole around 100GB of data, without running any destructive cyber campaign or disrupting information.
Security teams running unpatched, Internet-connected Zimbra Collaboration Suite (ZCS) can assume they are compromised and should take immediate detection and response action.
A recent security alert by CISA flagged active Zimbra exploits for CVE-2022-24682, CVE-2022-27924, and CVE-2022-27925, which are being chained with CVE-2022-37042, and CVE-2022-30333.
The cyber attacks lead to remote code execution (RCE) and access to the Zimbra platform.
The results can be quite dangerous when it comes to protecting sensitive info and shielding email-based follow-on threats. ZCS is a suite of business communication services that consists of an email server and a Web client for accessing messages via the cloud.
CISA and Multi-State Information Sharing and Analysis Center (MS-ISAC) strongly suggest administrators and users apply the guidelines in the recommendations of the cybersecurity advisory to defend their organization's systems against malicious cyber operations.
"NSA and the other authoring agencies urge all critical infrastructure entities and organizations, including the Healthcare and Public Health (HPH) Sector, and the Department of Defense and Defense Industrial Base, to apply the mitigations listed in this advisory," said NSA
Microsoft has identified a threat actor that has been targeting cryptocurrency investment startups. An entity that Microsoft has termed as DEV-0139 posed as a cryptocurrency investment firm on Telegram and used an Excel file deployed with malicious "well-crafted" malware to attack systems and access them remotely.
The threat is part of a trend in cyberattacks showing a high degree of sophistication. In our case, the threat actor made a fake OKX employee profile and joined Telegram groups used for facilitating communication between VIP clients and cryptocurrency exchange platforms.
In recent years, the cryptocurrency market has grown exponentially, getting the attention of investors as well as threat actors. Cybercriminals have used cryptocurrency for their attacks and campaigns, especially for ransom payment in ransomware attacks.
There has also been a rise in threat actors directly attacking organizations in the cryptocurrency industry for monetary motives. Cyberattacks targeting the cryptocurrency market come in various forms, this includes fraud, vulnerability exploitation, fake apps, and use of info stealers, threat actors use these variables to steal cryptocurrency funds.
In October, the victim was asked to join a new group and then asked to provide feedback on an Excel document that compared Binance, OKX, and Huobi VIP fee structures.
The document offered correct information and high awareness of the ground reality of crypto trading, however, it also sideloaded an infected. DLL (Dynamic Link Library) file to make a backdoor into the user's system. The victim was then told to view the .dll file while discussing the course fees.
The attack method is popular, Microsoft suggests the attacker was the same as the one running .dll files for the same reasons in June, and also behind other cyberattack instances as well. As per Microsoft, DEV-0139 is the same threat actor that cybersecurity agency Volexity associated with North Korea's state-sponsored Lazarus Group.
It uses a malware strain called AppleJeus and an MSI (Microsoft installer). The United States federal Cybersecurity and Infrastructure Security Agency reported on AppleJeus last year and Kaspersky Labs documented it in 2020.
1. Use the included indicators of compromise to investigate whether they exist in your environment and assess for potential intrusion.
2. Educate end users about protecting personal and business information in social media, filtering unsolicited communication (in this case, Telegram chat groups), identifying lures in spear-phishing emails and watering holes, and reporting reconnaissance attempts and other suspicious activity.
3. Educate end users about preventing malware infections, such as ignoring or deleting unsolicited and unexpected emails or attachments sent via instant messaging applications or social networks. Encourage end users to practice good credential hygiene and make sure the Microsoft Defender Firewall (which is enabled by default) is always on to prevent malware infection and stifle propagation.
4. Change Excel macro security settings to control which macros run and under what circumstances when you open a workbook. Customers can also stop malicious XLM or VBA macros by ensuring runtime macro scanning by Antimalware Scan Interface (AMSI) is on. This feature—enabled by default—is on if the Group Policy setting for Macro Run Time Scan Scope is set to “Enable for All Files” or “Enable for Low Trust Files”.
5. Turn on attack surface reduction rules to prevent common attack techniques observed in this threat:
The cryptocurrency market is a lucrative interest for cybercriminals. Targeted victims are identified via trusted channels to better the chance of attack. While hackers prefer targeting big organizations, smaller organizations can also become an easy target of interest.
Advanced Persistent Threat (APT) Lazarus linked to North Korea is increasing its attack base with current operation In(ter)caption campaign, which targets Macs with M1 chip of Apple. The state-sponsored group continues to launch phishing attacks under the disguise of fake job opportunities.
Threat experts at ESET (endpoint detection provider) alerted this week that they found a Mac executable disguised as a job details for an engineering manager position at the famous cryptocurrency exchange operator Coinbase. ESET's warning on twitter says that Lazarus posted the fake job offer to Virus total from Brazil.
"The ongoing campaign and others from North Korea remain frustrating for government officials. The FBI blamed Lazarus for stealing $625 million in cryptocurrency from Ronin Network, which operates a blockchain platform for the popular NFT game Axie Infinity," reports DarkReading
Lazarus made the latest rebuild of the malware, Interception.dll, to deploy on Macs via loading three files- FinderFontsUpdater.app and safarifontsagent, fake Coinbase job offers and two executables. The binary can exploit Macs packed with Intel processors and with Apple's new M1 chipset.
ESET experts began researching Operation In(ter)ception around three years back when the experts found attacks against military and aerospace companies.
They observed that the operation's main goal was surveillance, but it also found incidents of the threat actors using a target's email account through a business email compromise (BEC) to finalize the operation.
The interception.dll malware posts fake job offers to bait innocent victims, usually via LinkedIn. The Mac attack is the most recent one in a continuing aggressive front by Lazarus group to promote operation In(ter)ception, which has aggravated recently. ESET released a detailed white paper on the technique incorporated by Lazarus in 2020.
It's an irony that the fake Coinbase job posting targets technically oriented people. The experts think that the threat actors were in direct contact, which means the victim was prompted to open whatever pop-up windows showed up on the screen to see the "dream job" offer from Coinbase.
Apple revoked the certificate that would enable the malware to execute late last week after ESET alerted the company of the campaign. So now, computers with macOS Catalina v10.15 or later are protected, presuming the user has basic security awareness, saysPeter Kalnai, a senior malware researcher for ESET.
The mixers are crucial elements for threat actors that use it for money laundering, the mixer was used in laundering the funds stolen from victims.
As per OFAC, cybercriminals used Tornado Cash to launder more than $7 Billion worth of virtual currency, which was created in 2019. The Lazarus APT group laundered more than $455 million money and stole in the biggest ever virtual currency heist to date.
It was also used in laundering over $96 million of malicious actors' funds received from the 24th June 2022 Harmony Bridge Heist and around $7.8 million from Nomad crypto heist recently. The sanction has been taken in accordance with Executive Order (E.O) 13694.
"Today, Treasury is sanctioning Tornado Cash, a virtual currency mixer that launders the proceeds of cybercrimes, including those committed against victims in the United States,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “Despite public assurances otherwise, Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis and without basic measures to address its risks.”
In May, the US department of treasury sanctioned another cryptocurrency mixer, Blender.io, it was used by Lazarus APT, a hacking group linked to North Korea. It was used for laundering money from Axie Infinity's Ronin Bridge. The treasury has for the first time sanctioned a virtual currency mixer.
"Virtual currency mixers that assist criminals are a threat to U.S. national security. Treasury will continue to investigate the use of mixers for illicit purposes and use its authorities to respond to illicit financing risks in the virtual currency ecosystem.” concludes the announcement published by the U.S. Treasury Department. “Criminals have increased their use of anonymity-enhancing technologies, including mixers, to help hide the movement or origin of funds.”
In recent times, during the attacks against the security and vulnerability researchers in North Korea, an Internet Explorer zero-day vulnerability has been discovered. The zero-day vulnerability is a computer software vulnerability unknown to individuals who need to minimize the harm. Hackers may use the vulnerability to change computer systems, files, machines, and networks to the detriment of the vulnerability.