FBI identifies Lazarus Group as responsible for Stake.com attack

The U.S. Federal Bureau of Investigation (FBI) has officially linked the cybercrime collective known as Lazarus Group to the recent breach at Stake.com, a prominent player in the online gambling sector.

Stake.com took precautionary measures on September 4th, temporarily suspending its operations after discovering unauthorized transfers from several of its hot wallets.

This security incident primarily affected the Ethereum, Polygon, and Binance Smart Chain (BSC) networks on Stake.com. Notably, all other wallets were declared secure, and services resumed normal operations merely five hours after the situation was identified.

Initial reports indicated that the operator suffered a financial loss estimated at $41.3 million (£33.1 million/€38.6 million). The FBI has confirmed this figure, attributing the theft directly to Lazarus Group.

Also recognized as APT38, Lazarus Group has affiliations with the Democratic People’s Republic of Korea (DPRK), underscoring the increasing threat posed by state-sponsored cybercrime operations.

According to FBI investigations, the stolen assets were systematically funneled into various virtual currency addresses, showcasing the sophistication of the group’s tactics.

FBI Details Lazarus Group’s Extensive Criminal Activities

The FBI has also revealed that Lazarus Group has been implicated in several other significant international virtual currency thefts. To date this year, the group is estimated to have pilfered over $200 million in various cryptocurrencies.

In a statement, the FBI emphasized its commitment to unveiling and countering the DPRK’s reliance on illicit activities, including cybercrime and the theft of virtual currencies, to fund its regime. They have urged anyone with relevant information to come forward and assist in these ongoing investigations.

Founded in 2017, Stake.com has rapidly grown to encompass a user base of over 500,000 players globally, operating across several countries including Canada, Brazil, Japan, and the UK. This substantial growth underscores the increasing intersection of gambling and technology, as online platforms must continually enhance their security measures to protect both financial assets and user data.

This incident serves as a reminder for online gambling operators to prioritize cybersecurity strategies, implement robust protocols, and stay vigilant against emerging threats to safeguard their platforms and users.