Lazarus Group’s Link Between the Bybit and Phemex Hacks Uncovered

The North Korean cybercrime organization, Lazarus Group, is suspected to be behind both the $1.4 billion Bybit hack and the $29 million Phemex hack, according to the latest onchain evidence.

The February 21st Bybit exchange hack led to the largest crypto theft in history, with attackers stealing $1.4 billion worth of liquid-staked Ether, Mantle Staked ETH (mETH), and other ERC-20 tokens.

Blockchain security analysts, including Arkham Intelligence and onchain researcher ZachXBT, have traced the attack to Lazarus Group.

New onchain findings revealed that the same Lazarus Group-affiliated wallets were also behind the $29 million Phemex hack in January.

Lazarus Group Uses Crypto Mixers to Combine Funds from Bybit and Phemex Hacks

In a February 22nd X post, ZachXBT wrote, “Lazarus Group directly linked the Bybit hack to the Phemex hack by commingling funds from both incidents’ initial stolen addresses.”

According to onchain data, $29 million worth of digital assets was drained from Phemex’s hot wallets through over 125 transactions recorded across 11 blockchain networks. The attackers then used crypto mixers like Tornado Cash to convert the funds into Ether, making them harder to trace.

The Bybit hack alone accounted for more than half of the $2.3 billion stolen in crypto-related hacks in 2024, marking a significant setback for the industry.

Cyvers’ Meir Dolev noted the similarities between this attack and the $230 million WazirX hack and the $58 million Radiant Capital hack. Dolev explained that Bybit’s Ethereum multisig cold wallet was compromised through a deceptive transaction that tricked signers into unknowingly approving a malicious smart contract logic change.

“It seems that Bybit’s ETH multisig cold wallet was compromised through a deceptive transaction that tricked signers into unknowingly approving a malicious smart contract logic change,” he said.

Lazarus Group Steals $1.34 Billion Worth of Crypto in 2024

Lazarus Group is known for being behind some of the largest crypto heists. The group is the main suspect in the infamous $600 million Ronin Network hack and the $230 million WazirX exchange hack.

Throughout 2024, North Korean hackers stole $1.34 billion worth of digital assets across 47 incidents. This represents a 102% increase from the $660 million stolen in 2023, accounting for 61% of all crypto stolen in 2024.

The United States, Japan, and South Korea issued a joint warning on January 14th, citing the growing threat of North Korean hackers targeting the crypto industry.

Over the past year, North Korean hackers were also responsible for the $305 million DMM Bitcoin hack, the $50 million Upbit hack, the $50 million Radiant Capital hack, and the $16 million Rain Management hack.

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The post Lazarus Group Merges Bybit Funds with Phemex Hacker Wallet appeared first on Coin Engineer.

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The political tensions in the Red Sea

The United States’ establishment of the multinational “Guardian of Welfare Operation” to ensure global maritime trade security is further escalating tensions in the Suez Canal and Red Sea region. This situation is causing concern for the safety and stability of trade routes.

On the other hand, it seems that these tensions are affecting the interest rate decision of the US Federal Reserve (Fed). As the Fed has previously announced, signals that it will go for a rate cut have created a positive atmosphere in global risk markets. However, tensions in the Suez Canal point to an increase in geopolitical risks that could lead the Fed to delay its rate cut decision.

According to analyzes, these tensions are leading to supply disruptions and rising energy prices, triggering inflation concerns. This situation could lead the Fed to adopt a more cautious approach to rate cuts.

Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don’t forget to follow us on Telegram, YouTube and Twitter for the latest news and updates.

The post The political tensions in the Red Sea could affect Bitcoin appeared first on Coin Engineer.

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In its 2024 Digital Assets Outlook report, published on January 13, Fidelity said it had expected institutions to turn to DeFi for yields last year, but that this did not happen as the Fed’s interest rate hikes pushed them to move into a perceived safer environment.

DeFi platforms were previously thought to have difficult-to-use interfaces and to be vulnerable to attacks and exploits, leading institutions to “scrutinize the risks associated with smart contracts.”

The report said, “In the prevailing risk-averse environment, institutions believe that the mid-single-digit yields offered by DeFi yields are too low for the risk of experimenting with smart contracts.”

However, it noted that in 2024, institutions could have a “renewed interest” in DeFi yields if they “once again become more attractive than TradFi yields and a more advanced infrastructure emerges.”

Fidelity also expects companies to be “more comfortable with the idea of putting digital assets on their balance sheets” after the updated rules of the Financial Accounting Standards Board of the United States allowed companies to report both paper losses and gains in their cryptocurrency holdings.

Institutions Exploring Stablecoins (Fidelity)

In a section on stablecoins, Fidelity predicted that the institutional exploration of dollar-pegged assets would be “the biggest potential catalyst” for adoption this year.

It said that TradFi firms exploring the use of stablecoins for purposes such as settlements could “bring legitimacy to them” and that it expects to see increased adoption of stablecoins in three key sectors: payments, remittances, and international trade, as users seek faster and cheaper payments.

The post Fidelity: “Stablecoins and DeFi are a boon”! appeared first on Coin Engineer.

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US House Speaker: Bitcoin ETF Approvals Are a Historic Turning Point

Phoenix Group, the rising star of Bitcoin mining in recent times, signed an important agreement with Bitmain, the device manufacturer. The agreement included a purchase of $187 million worth of devices.

So What About Cooling?

Only the purchases were mentioned and no information was shared about the brand or how the devices were. It is known that the company uses devices that are powered by water immersion and attaches importance to renewable energy.

Phoenix company had reached an agreement in recent months to establish a $300 million Bitcoin mining farm in Saudi Arabia and Oman.

Phoenix Group, which closely follows blockchain technologies and takes various steps in this regard, also made its company shares public in December. It was stated that there was 33 times more demand for the company’s shares, which started trading on the Abu Dhabi Stock Exchange at that time, than expected.

Cleanspark, a Bitcoin mining company based in the United States, recently made an agreement with Bitmain for $90 million and also reached a preliminary agreement for a future purchase of $100 million.

The post Bitcoin Mining Doesn’t Stop: $187 Million Device Purchase appeared first on Coin Engineer.