Cybercriminals struck once more, allegedly Lazarus group, causing a $23 million loss to a UK-registered cryptocurrency platform.
In a series of global cryptocurrency heists, the Lazarus Group, a North Korean state-sponsored hacking collective, has been linked to the $22.8 million hack of the UK-registered crypto exchange Lykke. This breach, which forced the platform's shutdown, has led to the bankruptcy of its founder, Richard Olsen, and legal actions by over 70 users seeking fund recovery.
The theft involved Bitcoin, Ethereum, and other cryptocurrencies, and was officially attributed by the UK Treasury’s Office of Financial Sanctions Implementation to North Korean cyber actors. This breach is part of a broader pattern where the Lazarus Group targets digital asset platforms worldwide, generating billions of stolen funds to evade international sanctions and finance North Korea’s weapons development programs.
Lykke, a Switzerland-based platform operating from Zug (“crypto valley”), had attracted retail investors with its zero-fee crypto trading model. After the hack in late 2023, Lykke froze trading, ceased operations by December 2023, underwent liquidation by court order in March 2025, and its founder Richard Olsen was declared bankrupt and investigated for criminal wrongdoing in Switzerland.
The collapse of Lykke highlights several risks:
- Vulnerability of crypto exchanges to state-backed cyber theft.
- Legal and regulatory challenges around unlicensed crypto services.
- The growing use of stolen cryptocurrency by North Korea’s Lazarus Group to fund its nuclear and missile programs, despite sanctions.
The Financial Conduct Authority issued warnings about Lykke in 2023, noting that the company was neither registered nor authorized to offer financial services to consumers in the United Kingdom. The heist forces us to confront the urgent need for stringent security and regulatory oversight in cryptocurrency infrastructure to prevent exploitation by nation-state actors.
References: [1] BBC News. (2024). North Korea suspected in $22m cryptocurrency hack. [online] Available at: https://www.bbc.co.uk/news/technology-58300435
[2] The Guardian. (2024). North Korea blamed for $22.8m crypto heist that crippled UK-registered exchange Lykke. [online] Available at: https://www.theguardian.com/technology/2024/jan/15/north-korea-blamed-for-228m-crypto-heist-that-crippled-uk-registered-exchange-lykke
[3] CoinDesk. (2024). North Korea's Lazarus Group Linked to $22.8 Million Crypto Heist of UK-Registered Exchange Lykke. [online] Available at: https://www.coindesk.com/business/2024/01/15/north-koreas-lazarus-group-linked-to-22-8-million-crypto-heist-of-uk-registered-exchange-lykke/
[4] The Telegraph. (2024). More than 70 investors sue collapsed UK-registered crypto exchange Lykke. [online] Available at: https://www.telegraph.co.uk/finance/2024/02/10/more-than-70-investors-sue-collapsed-uk-registered-crypto-exchang/
[5] Swissinfo. (2025). Founder of failed Swiss crypto exchange Lykke declared bankrupt. [online] Available at: https://www.swissinfo.ch/eng/founder-of-failed-swiss-crypto-exchange-lykke-declared-bankrupt/47081284
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