WazirX’s $235 mn hack linked to North Korea; US, Japan, S Korea to counter

India’s largest cryptocurrency exchange, WazirX, suffered a major security breach in July 2024, which has now been attributed to North Korea’s notorious hacking organisation Lazarus Group. The United States, Japan, and South Korea issued a joint statement on Tuesday, confirming that the group was behind the attack, which resulted in the loss of 45 per cent of WazirX’s crypto asset holdings.

“The Democratic People’s Republic of Korea’s (DPRK) cyber programme threatens our three countries and the broader international community and, in particular, poses a significant threat to the integrity and stability of the international financial system,” the statement read.

Following the attack, the platform suspended its trading and operations to improve its security systems.

North Korean cyber attacks on the rise

The statement also revealed that several cryptocurrency thefts in 2024 were linked to North Korean entities. Some of the largest incidents included:

DMM Bitcoin: $308 million
Upbit: $50 million
Rain Management: $16.13 million
WazirX: $235 million
Radiant Capital: $50 million

“Our three governments strive together to prevent thefts, including from private industry, by the DPRK and to recover stolen funds with the ultimate goal of denying the DPRK illicit revenue for its unlawful weapons of mass destruction and ballistic missile programs,” the statement added.

Global action against cyber threats

The governments of the US, Japan, and South Korea have pledged to counter North Korea by imposing sanctions, strengthening cybersecurity in the Indo-Pacific, and enhancing coordination through trilateral working groups to combat cybercrime.

These efforts aim to recover stolen funds and prevent North Korea from accessing illicit revenue used to fund its weapons programmes.

WazirX’s response

Responding to the development, WazirX founder Nischal Shetty posted on X, “We urge swift international action and support to recover the stolen assets,” adding that the company will leave no stone unturned in the pursuit of justice.