From Sony to Bybit: How Lazarus Group Became the World’s Most Dangerous Crypto Hackers

North Korea’s Lazarus Group has been at the center of some of the most sophisticated cyber heists in history. From the Sony Pictures attack to billion-dollar crypto thefts, the hacking collective has evolved into a major financial and geopolitical threat. Their latest victim? Bybit, where they pulled off one of the largest crypto heists ever.

The Bybit Heist: A $1.46 Billion Blow

On February 21, Bybit, one of the world’s leading crypto exchanges, fell victim to an attack that drained $1.46 billion from its Ethereum cold wallet. This wasn’t just any cyber heist. The hackers used an advanced deception technique—what experts call a “masked” transaction method—along with a fake Safe wallet interface to bypass Bybit’s security protocols.

The scheme was so well-crafted that even the exchange’s security team didn’t initially detect it. By the time Bybit realized what had happened, the funds were long gone. The FBI later confirmed that the attack was orchestrated by the infamous Lazarus Group, a North Korean state-backed hacking organization.

Who Is the Lazarus Group?

Lazarus Group, also known as Hidden Cobra or ZINC, has been on the cybercrime radar since at least 2009. Thought to be operated under North Korea’s Reconnaissance General Bureau (RGB), the group’s primary focus has been financial cybercrime, espionage, and disruption.

Their early attacks were politically motivated—like the 2014 Sony Pictures hack, which was in retaliation for the movie The Interview. But over time, their focus shifted toward financial gain. With international sanctions limiting North Korea’s access to global banking, Lazarus turned to cyber theft as a means of funding the regime’s operations, including its nuclear weapons program.

Their reach isn’t limited to just one industry. The group has targeted:

• Financial institutions, including banks and crypto exchanges
• Government agencies and infrastructure
• Large multinational corporations
• Individual investors through phishing campaigns

A History of High-Profile Attacks

The Lazarus Group has built a reputation as one of the most feared cybercriminal organizations in history. Their track record includes some of the most devastating cyberattacks ever recorded.

1. Sony Pictures Hack (2014)
Lazarus gained global attention in 2014 when they launched a massive cyberattack against Sony Pictures. The group leaked confidential emails, employee data, and unreleased movies in response to the studio’s release of The Interview, a comedy about North Korean leader Kim Jong-un.

2. WannaCry Ransomware (2017)
This worldwide ransomware attack infected over 230,000 computers across 150 countries, demanding Bitcoin payments to restore access to files. The attack crippled hospitals, businesses, and government agencies, causing billions in damages.

3. Bangladesh Bank Heist (2016)
Lazarus attempted to steal nearly $1 billion from Bangladesh’s central bank using the SWIFT banking network. Though most of the transactions were blocked, they still managed to siphon $81 million.

4. Axie Infinity’s Ronin Bridge Hack (2022)
In one of the largest crypto hacks ever, Lazarus stole $620 million from the Ronin Bridge, an Ethereum-based sidechain for the popular game Axie Infinity.

5. Horizon Bridge and Stake.com Hacks (2023)
The FBI linked Lazarus to a $100 million attack on Harmony’s Horizon Bridge and a $41 million theft from the crypto betting site Stake.com.

How They Pull Off Their Attacks

Lazarus doesn’t just rely on brute-force hacking. Their techniques are a mix of social engineering, advanced malware, and sophisticated transaction obfuscation.

• Fake Job Offers: Lazarus has been known to lure employees from major crypto firms into downloading malware under the guise of job recruitment.
• Social Engineering: They often pose as investors, developers, or partners to gain insider access to financial systems.
• Phishing Attacks: Many of their victims fall for emails containing malicious links, allowing Lazarus to infiltrate corporate networks.
• Blockchain Laundering: The group uses services like Tornado Cash to launder stolen crypto, making it nearly impossible to trace.

The Fallout: Crypto’s Battle Against Lazarus

Bybit’s co-founder and CEO, Ben Zhou, didn’t mince words after the attack. He declared “war” on Lazarus, vowing to work with law enforcement and blockchain security firms to track and recover the stolen assets.

The crypto industry has been scrambling to counteract these threats. Some exchanges have implemented stricter withdrawal policies, while blockchain analytics firms like Chainalysis have been developing tools to track illicit transactions.

Governments have also taken action. The U.S. Treasury Department has sanctioned several crypto wallets linked to Lazarus, while law enforcement agencies worldwide are tightening regulations to curb illicit crypto flows.

How Do Crypto Exchanges Plan to Fight Back?

Despite these measures, Lazarus remains a step ahead, constantly evolving its methods. The Bybit attack is proof that even major exchanges with strong security systems are not immune.

What’s Next?

Lazarus Group isn’t slowing down. As crypto remains a lucrative target, they will likely continue refining their techniques. The challenge for governments, exchanges, and cybersecurity experts is staying ahead of a group that operates with state backing and virtually unlimited resources.

For now, one thing is certain: Lazarus is not just a hacker collective. It’s a financial arm of a sanctioned state, making them one of the biggest cybersecurity threats the world has ever faced.