North Korea-Linked Hack Collapses UK Crypto Platform Lykke in £17M Heist

A UK-registered cryptocurrency platform, Lykke, has been linked to a £17 million digital asset heist attributed to North Korea’s state-backed Lazarus Group [1]. The theft, which involved Bitcoin and Ethereum, led to the collapse of the firm, marking one of the most significant cyberattacks on British financial infrastructure by North Korean actors [2]. The UK Treasury’s Office of Financial Sanctions Implementation (OFSI) confirmed the involvement of the cyber gang, citing that the funds were siphoned through unregulated exchanges to obscure the trail and bypass anti-money laundering rules [3].

Lykke, which operated from Switzerland and marketed itself as a fee-free trading platform, was forced to halt operations in 2025 following the cyberattack. Despite initial promises to reimburse clients, the firm was eventually liquidated after a UK court ruled in favor of more than 70 customer complaints [4]. Interpath Advisory was appointed to distribute remaining funds to affected users, who reportedly lost £5.7 million [5]. The UK Financial Conduct Authority had already warned in 2023 that Lykke was not licensed to offer financial services in the country, raising concerns about its regulatory compliance long before the incident [6].

Israeli crypto intelligence firm Whitestream also pointed to the Lazarus Group as the perpetrator, noting the gang’s use of unregulated exchanges to launder the stolen funds [7]. However, some researchers have highlighted that attribution in such cases remains speculative, as cyberattack evidence can be difficult to trace definitively [8]. The UK Treasury stated it had coordinated with law enforcement agencies during the investigation, though no specific sources were disclosed [9].

Lazarus Group, long associated with North Korea, has a history of conducting high-profile cyberattacks to fund the country’s military and nuclear programs [10]. The stolen assets in this case are believed to have been used for similar state objectives, according to statements from cybersecurity analysts [11]. This incident adds to a series of recent cyberattacks attributed to the group, including a $680,000 theft revealed by crypto investigator ZachXBT, which also involved the use of fake identities and mainstream technology to infiltrate digital platforms [12].

The collapse of Lykke underscores the growing vulnerability of cryptocurrency platforms to advanced persistent threats. As cyberattacks become increasingly sophisticated and politically motivated, regulators and industry experts are calling for stronger security protocols and cross-border cooperation to combat these threats [13]. The incident has intensified global scrutiny of crypto firms and the need for enhanced compliance frameworks to protect digital assets [14].

The fallout from the heist highlights the challenges of securing digital infrastructure in an era where trust is as volatile as the assets themselves. It serves as a stark reminder that even well-positioned platforms can be brought down by well-organized cyber threats, particularly those backed by state resources [15].

Sources:

[1] title1.............................(https://coincentral.com/north-korea-linked-to-17m-crypto-theft-that-closed-uk-start-up-lykke/)

[2] title2.............................(https://financefeeds.com/north-koreas-lazarus-group-linked-to-17m-crypto-heist-that-shut-down-uk-startup-lykke/)

[3] title3.............................(https://www.cryptotimes.io/2025/08/18/north-korea-linked-to-17m-crypto-heist-that-collapsed-uk-firm/)

[4] title4.............................(https://coinmarketcap.com/community/articles/68a2edd846c6e92fc770a702/)

[10] title10.............................(https://abokifx.com/news/north-korea-accused-of-17m-crypto-heist-that-killed-british-start-up-the-telegraph-dc2c42c4-03a1-420d-873a-3172326ee0c9?type=market)

[13] title13.............................(https://uk.news.yahoo.com/know-us-firm-house-luxury-162317417.html)