FBI Links $41 Million Stake Hack to North Korea’s Lazarus Group

The US Federal Bureau of Investigations (FBI) claimed that the notorious North Korea-sponsored hacking syndicate Lazarus Group is responsible for the recent attack on the cryptocurrency sports betting and casino platform Stake.

The hack resulted in the loss of over $41 million worth of crypto assets from the gambling firm.

Lazarus Group Behind Stake Hack

In a press release issued on Sept. 6, 2023, the FBI said it carried out investigations into the Stake hack, which revealed Lazarus Group as the entity behind it. The agency further listed several cryptocurrency wallet addresses where Lazarus Group sent the stolen crypto funds.

“Private sector entities are encouraged to review the previously released Cyber Security Advisory on TraderTraitor and examine the blockchain data associated with the above-referenced virtual currency addresses and be vigilant in guarding against transactions directly with, or derived from, those addresses.”

Stake became the latest victim of a crypto-related hack on Sept. 4 after attackers drained millions of dollars from its platform. Web3 security company Cyvers first detected “multiple suspicious transactions” on Stake, with data showing that attackers transferred approximately $16 million worth of ETH and other stablecoins from the gambling company.

Onchain sleuth ZachXBT later noted that the hackers reportedly stole another $25.6 million on Polygon and Binance Smart Chain (BSC). Following revelations from security experts, Stake confirmed the attack, stating that there were unauthorized transactions on its Ethereum and BSC hot wallets while assuring users that their funds were safe.

Three hours ago, unauthorised tx’s were made from Stake’s ETH/BSC hot wallets.

We are investigating and will get the wallets up as soon as they’re completely re-secured.

User funds are safe.

BTC, LTC, XRP, EOS, TRX + all other wallets remain fully operational.

— Stake.com (@Stake) September 4, 2023

Blockchain security company Boesin put the total amount of stolen funds at $41.35 million, with the loot comprising $15.7 million on Ethereum, $7.8 million on Polygon, and an additional $17.8 million on BSC.

A few hours after the hacking incident, Stake announced that deposits and withdrawals for all currencies were functional on the platform.

Lazarus Group Continues Havoc on Crypto Companies

Lazarus Group has been associated with some of the biggest hacks in the crypto industry. According to the FBI, the North Korean hackers are responsible for crypto thefts worth $200 million so far in 2023.

As previously reported by CryptoPotato, Estonian crypto payments platform CoinPaid suspected Lazarus Group of a $37.3 million theft on its platform, which happened on July 22. The company also stated that the hacking organization studied CoinPaid for six months before carrying out its attack on the platform.

In August, the FBI issued a notice stating that Lazarus Group might make a move to sell 1,580 BTC (worth nearly $41 million at current prices) held in six different Bitcoin wallet addresses.