Crypto Exchange lykke Shuts down After $22.8 Million Heist by Lazarus Group
The UK-registered Lykke cryptocurrency exchange closed its doors and filed for bankruptcy following a devastating $22.8 million heist by North Korea’s Lazarus Group. This event marked another significant milestone in the murky world of cryptocurrency theft.
The British Treasury’s Office of Financial Sanctions Implementation (OFSI) pinpointed state-sponsored hackers responsible for the theft involving Bitcoin, Ethereum, and other cryptocurrencies. The attack led to Lykke’s demise, leaving its Swiss-based founder, Richard Olsen, struggling with bankruptcy and legal troubles.
This incident adds to Lazarus Group’s track record of global raids, estimated to have earned billions for North Korea’s regime. They aim to fund武器 developmental projects despite international sanctions.
The Telegraph reports that Pyongyang has exploited digital asset platforms worldwide to circumvent sanctions.
Richard Olsen, Lykke’s founder, established the platform in 2015, offering zero-fee trading services. Though, the cyberattack forced the company to suspend operations, leading to customer losses.
- UK courts saw more then 70 customer petitions seeking £5.7 million lost.
- lykke’s Swiss arm went into liquidation,causing Olsen’s personal bankruptcy.
Disagreement among experts exists regarding the conclusive attribution of the hack. While some like Whitestream point fingers at Lazarus, others argue that the evidence isn’t clear enough.
The UK’s Financial Conduct Authority had previously warned about Lykke’s lack of authorization in the contry, which further complex the aftermath.
