Cybercrime: How The Lazarus Group Became Crypto’s Biggest Threat

The Lazarus Group stands as one of the most dangerous cyber threats in the cryptocurrency world today. This North Korean hacking collective has stolen billions of dollars through sophisticated attacks on exchanges, banks, and digital asset platforms.

Unlike typical cybercriminals who work for personal gain, the Lazarus Group operates with full government backing to fund North Korea’s isolated economy and weapons programs.

Since 2009, this state-sponsored hacking operation has evolved from simple cyber espionage into a financial powerhouse. Their attacks have grown more complex and profitable over time, making them the most financially motivated state actor in cyberspace.

Who is the Lazarus Group? The hackers behind billion-dollar heists

TL;DR
The Lazarus Group is a North Korean state-backed team of hackers responsible for billion-dollar cyber heists. Their operations fund the country’s missile and nuclear programs.
Lazarus employs custom… pic.twitter.com/rBCgolViLM

— AetherAwakens (@intheaetherr) May 6, 2025

What Makes the Lazarus Group Different from Other Hackers

Most state-backed hacking groups focus on stealing secrets or disrupting enemy operations. The Lazarus Group breaks this pattern by prioritizing financial theft above everything else.

North Korea’s severe economic sanctions and international isolation have pushed the regime to use cybercrime as a primary revenue source.

The group operates with complete immunity within North Korea. Members face no legal consequences for their actions—in fact, successful hackers receive rewards and privileges from the government.

This protection allows them to take bigger risks than hackers from other countries who might face prosecution at home.

The training process begins early. North Korean authorities identify potential hackers as young as 11 years old. These children receive special education and privileges, including larger apartments and exemption from mandatory military service.

Many are later sent to China, North Korea’s primary ally, to learn about global internet systems before returning to work for the state.

Their operational structure consists of multiple teams with varying skill levels. Elite units demonstrate advanced capabilities that rival the world’s best cybersecurity professionals.

However, lower-tier teams sometimes execute less sophisticated attacks, suggesting a hierarchical organization with different specialization levels.

Major Attacks That Shook the Financial World

The group’s most famous early attack targeted Sony Pictures in 2014. Operating under the name “Guardians of Peace,” they spent over a year inside Sony’s systems before striking. The attack caused between $35 million and $85 million in damages, not counting massive reputational harm.

Many experts believe this attack was revenge for a Sony movie that portrayed North Korea’s leader unfavorably.

In 2016, the group attempted their most ambitious heist against Bangladesh Bank. They initially tried to steal $951 million from the bank’s Federal Reserve account in New York. Through careful planning and a year-long infiltration, they nearly succeeded.

Only a lucky coincidence stopped the full theft—a transfer to a bank on “Jupiter Street” triggered security alerts because “Jupiter” was also the name of a sanctioned Iranian ship. The group still escaped with $81 million.

The 2017 WannaCry ransomware attack showed their ability to cause global chaos. This malware infected over 200,000 computers across 150 countries, demanding bitcoin payments to unlock encrypted files.

The attack particularly damaged Britain’s National Health Service, forcing hospitals to cancel surgeries and redirect emergency patients. Total global damages reached billions of dollars, though the hackers only collected around $150,000 in bitcoin payments.

Recent attacks have targeted cryptocurrency exchanges directly. The group has stolen over $1.3 billion in digital assets, according to U.S. Department of Justice charges filed in 2020. These attacks often involve months of preparation, with hackers studying target systems and employee behavior before striking.

1/4 So far in July 2024 more than $35M from the $305M DMM Bitcoin hack has been laundered to the online marketplace Huione Guarantee

It is suspected that Lazarus Group is behind the hack due to similarities in laundering techniques and off chain indicators. pic.twitter.com/g1ndlttBll

— ZachXBT (@zachxbt) July 14, 2024

Why the Lazarus Group Will Continue Operating

Political efforts to stop North Korean cyber operations have failed repeatedly. Even during improved U.S.-North Korea relations under President Trump in his first term, attacks continued without interruption.

The regime views cybercrime as too valuable to abandon, especially given North Korea’s limited options for generating foreign currency.

The group’s technical capabilities continue to advance. They develop custom malware and tools designed to avoid detection by security software. Their patience and methodical approach often keep them hidden inside target networks for months before launching attacks.

International prosecution remains nearly impossible. While the U.S. has charged individual hackers, arrests are unlikely since North Korea doesn’t extradite citizens. The regime protects these hackers as valuable state assets rather than criminals.

Economic desperation drives continued operations. North Korea’s economy remains crippled by sanctions and international isolation. Cybercrime provides one of the few reliable methods for obtaining foreign currency to fund government operations and weapons development.

The Lazarus Group represents a new type of state threat—one where criminal activity serves national interests. Their success has likely inspired other nations to consider similar approaches, making them pioneers in state-sponsored financial cybercrime.