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Weekly Cryptocurrency Roundup: Hacks, Arrests, Bybit Proof
In this week’s guide, we aim to expose the dark underbelly of the cryptocurrency industry. We’ll look at the latest exploits of North Korea’s Lazarus Group, a daring Gala Games heist with a surprising twist, and the takedown of a major online drug market.
These cases highlight the ever-present threats facing the cryptocurrency industry.
The Lazarus Group strikes again!
In a surprising revelation from the United Nations, the infamous Lazarus Group, a cybercrime organization originating from North Korea, made headlines by laundering a staggering $147.5 million in stolen cryptocurrencies in North Korea. Using Tornado Cash, a cryptocurrency mixer blacklisted in 2021, they stealthily funneled their ill-gotten gains, leaving authorities scrambling in their wake.
This isn’t the first time the Lazarus Group has struck gold. In March 2023, they orchestrated a daring robbery of the HTX cryptocurrency exchange, making millions. Their skillful use of Tornado Cash has facilitated seamless money laundering, with the United Nations report revealing a staggering $3 billion stolen from crypto firms between 2017 and 2024.
Gala Games under attack
On May 20, 2024, Gala Games was a victim of this to a malicious cyberattack that saw the attackers mint as much as 5 billion $GALA tokens without authorization. Initially estimated at a staggering $200 million loss, Gala Games managed to mitigate the damage, with the actual value standing at $21 million before their quick intervention.
Operating with administrative access to the Gala Games smart contract, the attacker unleashed a torrent of illicit tokens, causing the market capitalization of the GALA token to plummet from $0.048 to $0.0388. Despite the chaos, Gala Games’ resilience shone through the recovery and the token price rebounded to $0.042.
In a surprising twist, the attacker returned 5950 ETH worth approximately $22.75 million. Gala Games announced a Burn program, using recovered funds to purchase $GALA tokens and burn them, with the aim of restoring stability to the token’s value.
The fall of the “Dark Lord”
In a dramatic showdown, federal agents were arrested Rui-Siang Linthe mastermind behind the “Undercover Market” empire, at John F. Kennedy International Airport on May 18. Lin faced multiple charges and eventually pleaded guilty, sealing his fate and ensuring a life behind bars.
From October 2020 to March 2024, Incognito Market thrived as a black market for narcotics, earning Lin tens of millions of dollars. However, justice caught up with him.
Also check: Q1 2024 Cryptocurrency Hack Report: Trends, Losses, and Recovery Efforts
All in all
This week’s cryptocurrency roundup was a whirlwind tour of the challenges the market faces too often. From North Korean money laundering schemes to audacious hacker attacks and black market takedown operations, it reminds us that the world of cryptocurrencies is still a work in progress.
But amidst the growing pains, there is a sense of resilience. Hackers are met with swift action, stolen funds are recovered, and vulnerabilities are fixed.
The future of cryptocurrencies is uncertain, but one thing is for sure: it’s never boring.