Recent events surrounding Lykke have highlighted significant risks in the cryptocurrency space associated with cyberattacks and financial losses.
Connection to North Korean Hackers
The UK government has linked a recent theft amounting to $22.8 million to the Lazarus Group from North Korea, notorious for cyberattacks funding military actions. The attack targeted Bitcoin and Ethereum networks, draining millions before routing assets through platforms with weak anti-money laundering measures.
Collapse of Lykke Platform
Founded in 2015, Lykke, which offered zero-fee trading, ceased operations in March 2022 following the cyberattack. Regulators had warned that the platform lacked proper authorization in the UK, leaving users unable to access their funds.
Legal Consequences for Investors
More than 70 customers of Lykke have launched legal actions, claiming losses of $7.66 million. A judge ordered the company's liquidation in March, while its founder is under criminal investigation in Switzerland. Meanwhile, doubts remain about definitive proof linking the theft to North Korea.
Despite accusations against North Korea, solid proof remains elusive. If confirmed, this would mark the largest theft of cryptocurrency from a UK company to date.