Crypto intelligence firm Chainanalysis has reported that the United States recovered over $30 million in cryptocurrencies stolen by the North Korean-linked hackers, the Lazarus Group, from the popular blockchain game Axie Infinity.
In a blog post, Chainanalysis said it collaborated in the recovery of cryptocurrencies along with U.S. law enforcement and other crypto organizations, in the first-ever recovery of stolen cryptocurrencies.
With the help of law enforcement and leading organizations in the cryptocurrency industry, more than $30 million worth of cryptocurrency stolen by North Korean-linked hackers has been seized. This marks the first time ever that cryptocurrency stolen by a North Korean hacking group has been seized, and we’re confident it won’t be the last.
The seizures represent about 10% of the total funds stolen in March 2022 from the Ronin Network, a sidechain built for the play-to-earn blockchain game Axie Infinity. In April, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) attributed the hack – one of the largest DeFi thefts to date – to the notorious North Korea hacking group known as Lazarus. The group systematically siphoned off about 3,000 ETH, more than $9 million, every two to three days from the initial amount stolen, according to blockchain research firm PeckShields. The funds were then repeatedly sent to Tornado Cash, a cryptocurrency mixer that allows people to hide the origin of funds.
One of the most troubling trends in crypto crime at the moment is the rise in stolen funds from DeFi products, and in particular cross-chain bridges.
We estimate that so far in 2022, North Korea-linked groups have stolen approximately US$1 billion of cryptocurrency from DeFi protocols.
The seized funds will gradually be deposited into Axie Infinity’s treasury and returned to the players’ community. This process may however take years.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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