ROME, Italy: U.S. authorities have accused North Korean-backed hackers of stealing US$1.5 billion in cryptocurrency from Dubai-based Bybit, one of the world's largest crypto exchanges.

The theft, which took place earlier this month, is one of the biggest crypto heists ever recorded, according to the FBI.

The cyberattack has been linked to TraderTraitor and the Lazarus Group, hacking teams previously identified by the U.S. government. The FBI claims these hackers use malware-laced cryptocurrency trading apps to steal digital assets.

In a public service announcement, the FBI stated the stolen assets are already being moved: "TraderTraitor actors are proceeding rapidly and have converted some of the stolen assets to Bitcoin and other virtual assets dispersed across thousands of addresses on multiple blockchains," the FBI said. "It is expected these assets will be further laundered and eventually converted to fiat currency."

North Korean state media has not commented on the theft, and Pyongyang's mission to the United Nations in Geneva has not responded to requests for clarification.

South Korea's spy agency estimates that North Korea has stolen $1.2 billion in cryptocurrency over the past five years, providing a rare source of foreign currency for its struggling economy. The funds are believed to support North Korea's nuclear weapons program, which faces severe U.N. sanctions and economic challenges due to the country's isolation during the COVID-19 pandemic.

A U.N. panel of experts is currently investigating 58 cyberattacks attributed to North Korea between 2017 and 2023, totaling $3 billion in stolen funds.

Bybit acknowledged the FBI's warning, with CEO Ben Zhou linking to a website offering $140 million in bounties for tracking and freezing the stolen funds.

The exchange explained that the attack targeted a routine transfer of Ethereum from a cold wallet (an offline storage system). The hacker used a sophisticated blind-signing exploit, tricking users with a nearly identical fake interface.

Blockchain analytics firm Certik called the breach the largest in blockchain history.

The heist has shaken the crypto market, contributing to a drop in digital asset prices. Bitcoin, which had traded over $100,000 a month ago, fell to around $82,000 following the attack.

Despite the breach, Bybit remains operational in Dubai, where it has received regulatory approvals from both the UAE's Security and Commodities Authority and Dubai's Virtual Assets Regulatory Authority.

The UAE has become a global crypto hub, attracting firms and investors with no personal income or capital gains tax. A report by Chainalysis in October estimated that the country received over $30 billion in crypto transactions between July 2023 and June 2024, ranking it among the top 40 markets globally.