In this week's guide, we'll be exposing the underbelly of the cryptocurrency industry, analyzing the latest exploits from North Korea's Lazarus Group, a surprisingly daring heist at Gala Games, the shutdown of a major online drug marketplace, and more.
These cases highlight the ever-present threats facing the cryptocurrency industry.
The Lazarus Group attacks again!
In a stunning revelation by the United Nations, a notorious cybercrime syndicate from North Korea, the Lazarus Group, has come under scrutiny for laundering $147.5 million worth of stolen cryptocurrency to North Korea. They used Tornado Cash, a cryptocurrency mixer that was blacklisted in 2021, to secretly transfer their ill-gotten gains, leaving authorities in a quandary.
This isn't the first time the Lazarus Group has struck gold: In March 2023, the group orchestrated a daring heist at cryptocurrency exchange HTX, stealing millions of dollars. The group was adept at seamlessly laundering money using Tornado Cash, with a UN report revealing that a staggering $3 billion was stolen from cryptocurrency companies between 2017 and 2024.
Gala Games under attack
On May 20, 2024, Gala Games fell victim to a malicious hack that resulted in attackers minting a whopping $5 billion worth of GALA tokens without authorization. Initially estimated at a staggering $200 million in losses, Gala Games managed to mitigate the damage, figuring out that the actual value before swift intervention was just $21 million.
The attackers used administrative access to Gala Games' smart contracts to distribute large amounts of fraudulent tokens, causing the market cap of the GALA token to plummet from $0.048 to $0.0388. Despite the turmoil, Gala Games proved resilient, and the token price recovered to $0.042.
In a surprising turn of events, the attackers returned 5,950 ETH, worth approximately $22.75 million, and Gala Games announced a burn program to use the recovered funds to buy $GALA tokens and then burn them, aiming to restore stability to the token's value.
The Fall of the Dark Lord
After a dramatic confrontation, federal agents arrested the mastermind of the “Incognito Market” empire, Lui Hsiang Lin, at John F. Kennedy International Airport on May 18. Lin faced multiple charges and eventually pleaded guilty and was sentenced to life in prison.
From October 2020 to March 2024, the Incognito Market thrived as a black market for drugs, making Lin tens of millions of dollars in profits. But justice caught up with him.
Also see: Crypto Hacking Report Q1 2024: Trends, Losses, and Recovery Efforts
as a whole
This week's crypto roundup takes a quick look at the challenges the market has faced in the past. From a North Korean money laundering scheme to audacious hacks and black market shutdowns, it's a reminder that the crypto world is still evolving.
But even amid the growing pains there is a sense of resilience: hackers are dealt with swiftly, stolen funds are recovered and vulnerabilities are patched.
The future of cryptocurrency is uncertain, but one thing is for sure: it will never be boring.
