N Korea responsible for WazirX's $235-mn crypto hack, say US, Japan, S Korea; issue global warning

WazirX, country’s largest crypto exchange, lost nearly 45 percent of its crypto assets holdings when one of its multisig wallets faced a security breach in July 2024

WazirX received a positive boost on January 14 after the US, Japan and South Korea blamed North Korea for the security breach on India's largest crypto exchange that led to a loss of $235 million.

In a joint statement, the three countries alleged that North Korea and its state-sponsored hackers Lazarus Group were responsible for a number of cyber attacks across the world, warning global blockchain and crypto industry regarding targeted attacks.

“The Democratic People’s Republic of Korea’s (DPRK) 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 statement issued on January 14 said. The statement was released on the official website of the Ministry of Foreign Affairs of Japan.

It added, “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 further mentions that in 2024 alone, the three governments have attributed multiple thefts in virtual assets to North Korea.

These include “DMM Bitcoin for $308 million, Upbit for $50 million, and Rain Management for $16.13 million. The US and the Republic of Korea additionally attribute to the DPRK, based on detailed industry analysis, thefts last year against WazirX for $235 million and Radiant Capital for $50 million.”

WazirX, country’s largest crypto exchange, lost nearly 45 percent of its crypto assets holdings when one of its multisig wallets faced a security breach in July 2024. Since then the exchange had halted trading and operations of the platform.

The three governments added that they will continue to work together to counter the DPRK’s malicious cyber activities and illicit revenue generation, and even impose sanctions on DPRK cyber actors and collaborating to improve cybersecurity capacity across the Indo-Pacific region. The United States, Japan, and the Republic of Korea reaffirm their commitment to combatting cyber threats posed by the DPRK and enhancing their coordination through the trilateral working groups.