Lazarus Group: The Mastermind Behind the Biggest Crypto Hack

Bittime -  Lazarus Group is a hacker group known as the biggest threat in the cyber world. They are not just an ordinary hacker gang, but a sophisticated hacking machine backed by North Korea.

With phishing strategies, smart contract exploitation, and crypto money laundering, Lazarus Group has changed the face of global cybercrime. From the Sony Pictures hack to the biggest theft in crypto history at Bybit, the Lazarus Group is a hacker group that continues to spread digital terror. 

So, who is Lazarus Group? How can they penetrate high-level security systems? And will the cyber world be able to stop them? This article will comprehensively discuss it. Let's take a look!

History and Origins of the Lazarus Group

The Lazarus Group is one of the world's most notorious hacking groups, associated with the Reconnaissance General Bureau (RGB), North Korea's main intelligence agency. Its existence was first detected in 2009, with an attack pattern that initially targeted the banking and government sectors. However, as financial technology developed, this group evolved into a major threat to the crypto industry.

The group first attracted global attention after an attack on Sony Pictures in 2014. However, cybersecurity experts found that traces of Lazarus had appeared in earlier attacks. Their attacks tend to be politically and economically motivated, with the primary goal of supporting the funding of the North Korean regime.

Over time, Lazarus Group expanded their target scope from banks and financial institutions to crypto exchanges and DeFi (Decentralized Finance) platforms. As blockchain technology continues to develop, they are starting to exploit security gaps in smart contracts and digital wallet systems, enabling the theft of large amounts of funds.

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Method Hacker Lazarus Group

Lazarus Group is known for using a variety of sophisticated hacking techniques to steal funds and information from their targets. Some of the methods most frequently used by Lazarus Group hackers include:

1. Spear Phishing and Social Engineering

This method involves tricking victims through emails or communications that appear legitimate. Lazarus often impersonates technology companies, crypto investors, or financial institutions to gain access to targets' systems.

2. Malware and Trojans

This group developed custom malware to steal login credentials and sensitive information from victims' devices. One of the famous malwares they used was WannaCry, which attacked more than 300,000 computers worldwide.

3. Exploit Smart Contracts and Blockchain Bridges

In recent years, Lazarus began exploiting weaknesses in smart contracts and cross-chain bridges to steal large amounts of funds. This was seen in attacks on Ronin Network and Horizon Bridge.

4. Stealing Private Keys and Wallet Drainers

They often use malware keylogging and attacks against software-based crypto wallets to gain direct access to victims' digital assets.

5. Money Laundering with Mixers and Cross-Chain Swaps

To hide traces of stolen funds, Lazarus uses crypto mixers, cross-chain bridges, and DEX (decentralized exchange) services that do not require KYC.

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The Biggest Attack Carried Out by Lazarus Group Hackers

Since 2014, Lazarus Group has carried out various cyber attacks that shocked the world. Here are some of their biggest attacks:

1. Sony Pictures Hack (2014)

• Attacks on Sony Pictures in response to the film The Interview that portrays the North Korean leader in a negative light.
• This attack involved leaking internal data, emails, and films that had not been released to the public.

2. Bangladesh Bank Heist (2016) - $81 Million Stolen

• Lazarus managed to hack the SWIFT system and tried to transfer nearly $1 billion from Bangladesh Bank reserves.
• Managed to steal $81 million, although some of the funds were blocked before they reached their hands.

3. WannaCry Ransomware Attack (2017)

• Spread global ransomware that encrypts data on more than 300,000 computers in 150 countries.
• The victim must pay ransome in Bitcoin to regain access to their systems.

4. Ronin Network Hack (2022) - $600 Million

• Attacking the network used by the game Axie Infinity, one of the biggest blockchain games at the time.
• Used an exploit in the transaction validation system to steal 173,600 ETH and 25.5 million USDC.

5. Bybit Hack (2025) - $1.4 Billion

• The biggest attack ever carried out by Lazarus targeted crypto exchange Bybit.
• Hackers used advanced phishing to trick security systems and transferred 401,000 ETH to a wallet they controlled.
• Some funds are converted into Bitcoin and transferred to various anonymous wallet addresses.

Global Impact of the Lazarus Group

Lazarus Group's activities have a broad impact on the crypto world and the global financial system. Here are some of the main impacts of their attacks:

Financial Loss

Since 2017, Lazarus Group has stolen more than $6 billion from various financial platforms. Crypto exchange hacks caused many users to lose their assets permanently. 

Declining Confidence in Crypto Security 

Crypto exchanges and DeFi platforms that were previously considered safe are now starting to implement additional security measures, such as Multi-Factor Authentication (MFA) and enhanced security systems based on smart contract auditing. 

However, ongoing hacks show that security challenges remain enormous, and industry players must continue to adapt to face increasingly complex threats.

Increased International Regulation and Oversight 

The increasing threat from the Lazarus Group has also prompted governments and international organizations to tighten regulations and supervision of crypto transactions.

Agencies such as the FBI, NSA, and UN are increasingly investigating the activities of these groups, while the United States government has imposed economic sanctions on individuals and entities involved in laundering hacked money.

Funding for North Korea's Nuclear Program

A report from the United Nations Security Council shows that hacking proceeds are being used to fund the development of nuclear weapons, which is further exacerbating geopolitical tensions in the East Asian region and the world. 

With funds from cybercrime, North Korea can accelerate its weapons development program, potentially increasing the risk of global conflict.

Lazarus Group's Evolution in Cybercrime

Lazarus Group's threat to cyberspace also creates new challenges for the digital security industry. As blockchain technology and artificial intelligence develop, the group continues to develop more sophisticated attack methods. 

Cybersecurity experts highlight that Lazarus is not only relying on traditional techniques such as phishing, but is also starting to exploit artificial intelligence and machine learning to evade detection. This shows that digital security challenges will continue to increase over time.

Conclusion

Lazarus Group has proven itself to be one of the world's most dangerous hacking groups, with a series of attacks that rocked the financial and crypto industries. 

With increasingly sophisticated tactics and support from the North Korean government, they continue to develop new methods to steal digital assets on a large scale.

FAQ

Who exactly is the Lazarus Group and what are their goals?

Lazarus Group is a hacker group allegedly controlled by the Reconnaissance General Bureau (RGB), North Korea's main intelligence agency. They are known for carrying out large-scale cyberattacks against banks, crypto exchanges, and financial institutions with major objectives of stealing funds to fund North Korea's nuclear program.

How did Lazarus Group carry out the hack?

Lazarus Group uses a variety of advanced techniques, including spearphishing, malware, smart contract exploitation, and money laundering via mixers and cross-chain swaps. They often target individuals and companies with trap emails containing malware to steal login credentials and access to digital financial systems.

What are the biggest attacks ever carried out by the Lazarus Group?

Some of the largest attacks carried out by the Lazarus Group include:

• Sony Pictures Hack (2014) – leaks internal data in response to movies  The Interview.
• Bangladesh Bank Heist (2016) - steal $81 million from the SWIFT system.
• WannaCry Ransomware (2017) – a global ransomware attack that affected more than 300,000 computers.
• Ronin Network Hack (2022) - steal $600 million from the gaming network Axie Infinity.
• Bybit Hack (2025) – set a record as The largest crypto theft was worth $1.4 billion.

Reference

NCC Group, The Lazarus group: North Korean scourge for +10 years, accessed February 28, 2025

Independent, How North Korea Pulled Off The Biggest Heist Story, accessed 28 February 2025

Author: RC