Listen to this Post
A Silent Strike on Taiwan’s Crypto Scene
In a disturbing development that highlights the evolving sophistication of cybercrime, Taiwanese cryptocurrency exchange BitoPro has reported a devastating hack in which \$11 million in digital assets were stolen. The attack occurred on May 8, 2025, but was only publicly disclosed weeks later, igniting concern over both the scale of the theft and the identity of the alleged perpetrators — the infamous Lazarus Group, a state-sponsored North Korean hacking collective. With growing pressure on crypto platforms to secure user funds, this incident sheds light on the increasing vulnerability of even well-established exchanges and the complex tactics employed by international cybercriminals.
BitoPro Hack: Inside the $11M Digital Theft
A Sophisticated Attack Unfolds
On May 8, 2025, BitoPro, a leading Taiwanese crypto exchange with over 800,000 registered users and \$30 million in daily trading volume, suffered a targeted cyberattack during a routine hot wallet system update. Exploiting a window of vulnerability, the attackers executed unauthorized withdrawals across multiple blockchains including Ethereum, Tron, Solana, and Polygon. The stolen assets, amounting to roughly \$11 million, were rapidly laundered using decentralized exchanges (DEXs) and mixers like Tornado Cash, ThorChain, and Wasabi Wallet, masking their trail.
Social Engineering Meets Advanced Malware
The internal investigation revealed that the breach did not involve any insider threat but was the result of an intricate social engineering campaign. An employee managing cloud infrastructure was infected with malware, allowing the attackers to steal AWS session tokens. This bypassed multi-factor authentication (MFA), enabling them to infiltrate and control BitoPro’s cloud infrastructure remotely. They then used a command-and-control (C2) server to inject malicious scripts into the hot wallet infrastructure, simulating legitimate operations and avoiding immediate detection.
Blame Falls on Lazarus Group
In its post-incident report, BitoPro declared that the tactics, techniques, and procedures (TTPs) mirrored previous international cyber incidents linked to the Lazarus Group. Known for high-profile attacks on SWIFT banking systems and crypto platforms, Lazarus has now allegedly added BitoPro to its long list of victims. Notably, this group is also believed to be behind a record \$1.5 billion theft from Bybit, further solidifying its reputation as one of the most dangerous threat actors in the crypto world.
Delayed Disclosure Raises Eyebrows
Critics have noted BitoPro’s slow response, as the breach was only confirmed publicly on June 2 — nearly a month after the incident. However, the company insists that all operations remained unaffected, and the hot wallets were replenished using internal reserves, mitigating customer losses. Following the breach, BitoPro worked with cybersecurity experts and authorities, concluding its forensic investigation by June 11.
What Undercode Say:
Lazarus Group’s Expanding Reach in Crypto Crime
This breach reflects the increasingly systematic and surgical nature of Lazarus Group’s operations. With decades of experience in cyber-espionage and digital heists, Lazarus no longer targets just major Western financial institutions. Their pivot to Asian crypto markets shows a strategic expansion, leveraging the region’s less regulated environments and high-volume platforms. By targeting cloud-based infrastructure and exploiting internal software update processes, they demonstrate an evolution in cyber tactics that blends traditional malware deployment with psychological manipulation.
Social Engineering as the Trojan Horse
The human element remains the soft underbelly of cybersecurity. In this case, the compromise of a single employee’s device brought down a multi-million-dollar infrastructure. The exploitation of cloud session tokens bypassing MFA mechanisms is particularly alarming and calls into question the over-reliance on token-based security layers. It also highlights the urgent need for endpoint monitoring, zero-trust frameworks, and real-time behavioral analytics.
Crypto Infrastructure Needs Hardened Defenses
While BitoPro was able to replace user funds, the hack highlights the inherent fragility of hot wallet systems, particularly during maintenance windows. Exchanges need to isolate systems undergoing upgrades and introduce temporary fail-safes to avoid breaches during vulnerable operations. Additionally, multi-layered cloud access policies, frequent token expiration, and blockchain-specific activity alerts could significantly raise the cost for attackers.
Transparency Gap Hurts Trust
BitoPro’s delay in disclosing the incident undermines user trust. In an industry already plagued by volatility and skepticism, transparency during crises is crucial. Although operations were restored and customers were not financially impacted, the lack of timely communication sets a dangerous precedent. Every hour counts in cybersecurity, and withholding information risks compounding damage both technically and reputationally.
Cross-Chain Laundering Remains a Challenge
The use of multiple blockchains and privacy tools like Tornado Cash reflects a trend where attackers diversify laundering channels to avoid being traced. While these tools have legitimate uses, their role in obfuscating illicit activities cannot be ignored. Regulators and blockchain analytics firms must increase cross-chain tracing capabilities and push for tighter scrutiny of anonymizing services.
Regulatory Wake-Up Call for Asia
This hack should serve as a warning signal to Asian crypto regulators. Many regional platforms operate in regulatory grey zones, and the lack of uniform standards creates opportunities for exploitation. Coordinated efforts between national cybersecurity centers and exchanges could mitigate future attacks. Incident disclosure timelines, security audits, and employee training standards need to be regulated more stringently.
Lazarus: Financial Lifeline for Pyongyang?
It’s widely believed that the Lazarus Group’s operations directly fund North Korea’s nuclear and weapons programs. The global crypto ecosystem has become an alternative revenue stream for Pyongyang, circumventing traditional sanctions and economic restrictions. This adds a geopolitical layer to the BitoPro hack, making it not just a financial crime but a state-sponsored act with international implications.
🔍 Fact Checker Results:
✅ Lazarus Group has a documented history of targeting crypto exchanges globally
✅ \$11M was stolen from BitoPro across multiple blockchain networks
❌ No internal involvement was found during the post-incident investigation
📊 Prediction:
The Lazarus Group will likely escalate attacks on mid-sized Asian exchanges, especially those with gaps in cloud security and incident response protocols. We can expect more cross-chain laundering and advanced malware deployments as they adapt faster than regulatory frameworks. Exchanges failing to harden infrastructure will continue to be prime targets in 2025 and beyond. 🚨💻
References:
Reported By: www.bleepingcomputer.com
Extra Source Hub:
https://www.github.com
Wikipedia
OpenAi & Undercode AI
Image Source:
Unsplash
Undercode AI DI v2
