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Crypto Weekly Recap: Hacks, Arrests, Bybit Proof
In this week’s guide, we plan to expose the underbelly of the crypto industry. We’ll dissect the latest exploits of North Korea’s Lazarus Group, a daring heist targeting Gala Games with a surprising twist and the takedown of a major online drug market.
These cases highlight the ever-present threats facing the crypto industry.
Lázaro Group strikes again!
In a surprising revelation from the United Nations, the notorious Lázaro Group, a cybercrime syndicate originating from North Korea, made headlines by laundering a staggering $147.5 million worth of stolen cryptocurrencies back into North Korea. Using Tornado Cash, a crypto mixer blacklisted in 2021, they stealthily channeled their ill-gotten gains, leaving authorities scrambling in their wake.
This is not the first time the Lazarus Group has struck gold. In March 2023, they orchestrated a daring heist on the crypto exchange HTX, profiting millions. The skillful use of Tornado Cash has facilitated seamless money laundering, with the UN report revealing a staggering $3 billion stolen from crypto companies between 2017 and 2024.
Gala games under attack
On May 20, 2024, Gala Games was a victim to a malicious hack that saw attackers mint a staggering 5 billion $GALA Tokens without authorization. Initially estimated at a staggering loss of US$200 million, Gala Games managed to mitigate the damage, with the actual figure being US$21 million before their quick intervention.
Operating with administrative access to the Gala Games smart contract, the attacker released a torrent of illicit tokens, plunging the GALA token’s market capitalization from $0.048 to $0.0388. Despite the chaos, Gala Games’ resilience shone through as they recovered and the token price returned to $0.042.
In a surprising turn of events, the attacker returned 5,950 ETH worth around $22.75 million. Gala Games announced a Burn Program, using the recovered funds to purchase $GALA tokens and burn them, with the aim of restoring stability to the token’s value.
The Fall of the “Dark Lord”
In a dramatic confrontation, federal agents arrested Rui Siang Linthe mastermind of the ‘Mercado Incógnito’ empire, at John F. Kennedy International Airport, on May 18. Lin faced multiple charges and ended up pleading guilty, sealing his fate and guaranteeing a lifetime behind bars.
From October 2020 to March 2024, Mercado Incógnito thrived as a black market for narcotics, earning Lin tens of millions of dollars. However, justice caught up with him.
Also check out: Crypto Hack Report Q1 2024: Trends, Losses and Recovery Efforts
However
This week’s crypto roundup was a whirlwind tour of the challenges the market faces all too often. From North Korean money laundering schemes to audacious hacks and black market takedowns, it’s a reminder that the crypto world is still under construction.
But amid the growing pains, there is a sense of resilience. Hackers are acted upon quickly, stolen funds are recovered, and vulnerabilities are patched.
The future of cryptography is uncertain, but one thing is certain: it is never dull.