Akihabara News — North Korean hackers have been accused of perpetrating a massive theft from DMM Bitcoin, a prominent Japanese cryptocurrency exchange. This accusation came after an extensive investigation involving Japanese and US law enforcement agencies, including the FBI and Japan’s National Police Agency.
DMM Bitcoin, part of the DMM group–a conglomerate known for its wide range of services from online content to e-commerce–had reported an unauthorized withdrawal of approximately US$308 million in Bitcoin in May. This theft was not just a financial blow but also a cyberattack that exploited vulnerabilities in DMM’s infrastructure, leading to the unauthorized transfer of more than 4,500 BTC at the time.
The hackers, identified as part of the North Korean state-backed group known as TraderTraitor, used sophisticated methods to breach DMM’s systems. They reportedly initiated contact with an employee of Ginco, a company managing DMM Bitcoin’s crypto wallet, through a fake LinkedIn recruiter profile. This social engineering tactic allowed the hackers to infect the employee’s system with malware, from which they manipulated a legitimate transaction request to execute the theft.
Officials have described the operation as part of a broader pattern where North Korea uses cyberattacks to fund its nuclear weapons program, circumventing international sanctions. This incident adds to a list where North Korean cyber actors are suspected of stealing around US$1.3 billion in cryptocurrencies globally in 2024 alone.
The method used in this attack involved intercepting and altering transaction details, showcasing the evolving nature of cyber threats.
Cryptocurrency, or crypto, refers to digital or virtual currencies that use cryptography for security, making them difficult to counterfeit or double-spend. However, once stolen, these assets can be laundered through various means, including transferring them to untraceable wallets or using mixers to obscure their origin.
In response to the theft, DMM Bitcoin secured 55 billion yen (US$360 million) from a group company to cover the losses, ensuring no financial damage to its customers. However, the exchange announced it would close its business, handing over customer accounts and assets to another exchange, highlighting the severe impact of such cybercrimes on businesses.
This incident has reignited discussions on cybersecurity in the crypto industry, with calls for enhanced security measures and international cooperation to combat state-sponsored cyber threats. Japan, already known for its stringent regulations on cryptocurrency following previous high-profile hacks, is likely to tighten its oversight further in response to this breach, emphasizing the need for robust digital security in the evolving world of cryptocurrencies.
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