Bitcoin News Today: North Korea-Linked Hackers Steal $23M from UK Crypto Firm Lykke

The UK-based cryptocurrency startup Lykke became the target of a sophisticated cyberattack in 2024, resulting in the theft of $23 million in digital assets. The breach, attributed to the Lazarus Group—a hacking collective widely believed to be state-backed by North Korea—involved the siphoning of 158 Bitcoin (BTC) and 2,161 Ethereum (ETH) from the platform. The stolen Ethereum was quickly converted into DAI stablecoin through the MakerDAO protocol, while the Bitcoin was distributed across multiple wallets to evade detection and traceability [1].

The British Treasury’s Office of Financial Sanctions Implementation (OFSI) confirmed the connection between the attack and North Korean cyber actors, reinforcing the growing concern over state-sponsored cryptocurrency crimes. The OFSI worked alongside law enforcement to investigate and attribute the theft to the Lazarus Group, which has been linked to numerous high-profile crypto breaches globally [2]. Investigators noted that the precision and scale of the attack were consistent with previous operations conducted by North Korea-linked actors, often aimed at generating revenue to fund the regime’s nuclear and military programs [3].

Lykke, a platform registered in the UK but operated from Switzerland, faced severe legal and financial consequences following the breach. A court ordered the company to be liquidated in March 2025 after affected users launched a legal campaign for compensation. The Financial Conduct Authority (FCA) had previously warned about Lykke’s unregistered services to UK residents, raising questions about the firm’s compliance with local regulations [4]. The collapse of Lykke marked one of the largest cyber-enabled crypto frauds ever recorded in the UK, highlighting the vulnerability of digital financial services to advanced cyber threats.

The attack is part of a broader trend of cyber operations conducted by the Lazarus Group. Over the years, the group has targeted major cryptocurrency exchanges in Japan and other jurisdictions, stealing hundreds of millions of dollars in digital assets. The stolen funds are typically moved through stablecoins and decentralized platforms to obscure their trail. Recent investigations suggest that the funds from the Lykke hack may have been used to circumvent international sanctions and support North Korea’s strategic programs [5].

This incident has reignited global discussions on the intersection of cryptocurrency and national security. Experts warn that as traditional financial systems become more regulated, regimes like North Korea are increasingly turning to digital assets to access foreign currency and sustain their economic and military activities. The Lykke case underscores the urgent need for stronger international cooperation and enhanced security measures to protect the crypto industry from state-sponsored threats [6].

Sources:

[1] https://www.ainvest.com/news/north-korea-linked-hackers-steal-23m-uk-crypto-firm-lykke-2508/

[2] https://cryptonews.com/news/lazarus-group-accused-of-stealing-23m-from-british-crypto-startup-lykke/

[3] https://www.cryptowisser.com/news/lazarus-group-23-million-lykke-exchange-hack-uk-treasury/

[4] https://www.mitrade.com/au/insights/news/live-news/article-3-1048791-20250819

[5] https://x.com/leviathan_news?lang=en

[6] https://thecoinrise.com/north-korean-hackers-hit-uk-crypto-startup-lykke-steals-23m/