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Update:
- The U.S. Department of Treasury has designated the virtual currency mixing platform Blender.io as a sanctioned entity.
- Blender.io is a virtual currency mixing platform that helps conceal the identity of those involved in cryptocurrency transactions.
- A North Korean hacking group allegedly used Blender.io to launder more than $20 million in cryptocurrency stolen from the video game Axie Infinity, Law360 reports.
- The North Korean hacking group, called Lazarus, stole the cryptocurrency during a cyberattack on Axie Infinity last month.
- Lazarus was able to steal a total of almost $620 million from Axie Infinity during the cyberattack.
- Blender.io has also reportedly been used by Russian-linked hacking crews, Law360 reports.
North Korean Hacking Group Axie Infinity Breach Overview:
- Who: U.S. officials have linked a March cyber attack of Axie Infinity to North Korean hacking groups called Lazarus and Advanced Persistent Threat 38.
- Why: The groups were able to steal $620 million worth of in-game funds.
- Where: The studio behind Axie Infinity, Sky Mavis, is based out of Vietnam.
(04/19/2022)
State-sponsored spies from North Korea were responsible for stealing $620 million worth of funds from the video game Axie Infinity during a cyber attack last month, according to U.S. officials.
The North Korean hacking group responsible for the attack goes by the name Lazarus, and its cryptocurrency address has since been made a sanctioned entity by the U.S. Treasury Department’s Office of Foreign Assets Control, Law360 reports. Sanctioning Lazarus prevents any U.S. person or company from being able to help the North Korean hacking group launder the money it stole during its attack on Axie Infinity.
Lazarus was holding more than $445 million worth of Ethereum tokens as of last week, according to cryptocurrency transaction tracking companies, Law360 reports.
The Vietnam-based studio behind Axie Infinity, Sky Mavis, revealed last month that the blockchain network overseeing the game’s Ethereum-based in-game economy had been breached by outside intruders.
North Korean Axie Infinity Crypto Hackers Laundering Stolen Money
Lazarus was able to make off with $620 million worth of Ethereum and U.S. Dollar Coin, Law360 reports.
Blockchain analysis firm Elliptic revealed in a blog post last week that the North Korean hacking group has already been able to launder around $97 million of the funds it stole from Axie Infinity.
Lazarus has been using what are known as decentralized changes to launder the money since they are able to bypass security procedures that would otherwise be in place to prevent fraudulent activity.
In addition, according to Elliptic, Lazarus has reportedly been using Tornado Cash, a cryptocurrency mixing service, to clean the stolen funds, Law360 reports.
The U.S. Federal Bureau of Investigations also made an announcement last week stating that it too had traced the attack back to Lazarus and another North Korean hacking group known as Advanced Persistent Threat 38.
Cryptocurrency has been notoriously faced with criticism over its ability to keep customers’ funds safe and to allow them to trade fairly and honestly.
Last August, meanwhile, cryptocurrency exchange Coinbase had a class action lawsuit filed against the platform over claims it either froze the account balance of platform holders or allowed them to be hacked by unauthorized third parties.
Were you affected by the hacking incident that caused Axie Infinity to lose $620 million in funds? Let us know in the comments!
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