The illustration for this report, provided by CryptoSlate, features a combination of content, potentially including AI-generated elements.

In recent developments, Indodax, a prominent Indonesian cryptocurrency exchange, has reportedly fallen victim to a significant cyber exploit amounting to $20.5 million, as revealed by blockchain security firm Cyvers.

This substantial financial loss spans several blockchain networks. Specifically, the breach included a $1.4 million deficit in Bitcoin, alongside a $5 million heist affecting both the TRON and Polygon networks. Additionally, the Optimism and Ethereum blockchains were not spared, suffering combined losses exceeding $14 million.

On September 11, Indodax took to social media platform X to disclose that its team had identified a critical security vulnerability within their platform. Despite this alarming revelation, the company reassured its user base that their account balances remain completely secure, both in cryptocurrencies and Indonesian rupiah.

In their statement, Indodax elaborated:

“We are currently undergoing comprehensive maintenance to ensure the full functionality and security of our system. During this maintenance period, access to the INDODAX web platform and application will be temporarily restricted.”

Furthermore, Indodax cautioned its users against phishing attempts, specifically warning them about fraudulent links claiming to offer “INDODAX fund refund invitations” or requests for personal information.

Yosi Hammer, the Head of AI at Cyvers, suggested that the sophisticated nature of the attack bears hallmarks typical of the North Korea-backed Lazarus Group hackers. He explained:

“The attack displayed techniques commonly associated with advanced hacking groups like the Lazarus Group, known for their swift asset transfers, unauthorized access controls, and complex asset swaps.”

However, Hammer was quick to point out that it is premature to definitively attribute the attack to any specific group.

Over the past seven years, North Korean hackers have been implicated in stealing approximately $3 billion in cryptocurrency through 58 suspected cyber heists. During this period, these hackers have executed highly sophisticated breaches targeting a variety of crypto entities, including centralized exchanges and blockchain bridges. Their tactics have also included posting counterfeit CVs on job boards to gain access to crypto projects.

This extensive history of cyber theft has led some observers to label North Korea as “the world’s most prolific cyber-thief.”

Additionally, market analysts have noted that North Korea has been leveraging cryptocurrency as a means to circumvent international sanctions and fund its weapons development programs.