North Korea’s Lazarus Group behind $235 million WazirX hack, confirms joint statement by US, South Korea, Japan

A joint statement by the United States, South Korea, and Japan has confirmed that North Korean hackers orchestrated the $235 million cyberattack on Indian cryptocurrency exchange WazirX in July 2024. This marks the first official attribution of the attack to North Korea by the three nations, highlighting growing concerns about the vulnerability of global crypto platforms.

The statement identified the infamous Lazarus Group, a North Korea-affiliated hacking collective, as a key perpetrator. Apart from targeting WazirX, the hackers stole tokens from other exchanges, including DMM Bitcoin ($308 million), Upbit ($50 million), and Bahrain-based Rain Management ($16.13 million). The stolen cryptocurrency is believed to have been funnelled into North Korea’s weapons of mass destruction and ballistic missile programs.

“The DPRK’s cyber program 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 joint statement said.

WazirX, one of India’s leading cryptocurrency exchanges, faced severe scrutiny following the hack. The incident underscores vulnerabilities in India’s burgeoning digital asset sector, raising alarms about the need for enhanced cybersecurity measures. Experts have pointed out that Indian exchanges could be lucrative targets for sophisticated global hacking groups, especially given the country’s rapidly growing crypto adoption.

The Indian government has not yet officially commented on the development, but the attack has spurred calls for stricter regulations and public-private collaboration to safeguard digital assets.

The joint statement highlighted the coordinated efforts of the US, South Korea, and Japan to curb North Korea’s illegal cyber activities. The three nations aim to recover stolen funds and deny North Korea access to illicit revenue streams. “Our governments strive together to prevent thefts, including from private industry, by the DPRK and to recover stolen funds,” the statement added.

The WazirX hack has reignited debates on crypto regulation in India. While the country has witnessed an exponential rise in digital asset investments, the lack of a robust regulatory framework exposes exchanges and users to significant risks.