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Posted On April 28, 2022 Consumer Privacy & Data Breaches

Government Agencies Warn of Hackers Targeting Cryptocurrency Trading Apps

Cryptocurrency TheftApril 28, 2022 – Recently, the Federal Bureau of Investigation (FBI), the Cybersecurity and Infrastructure Security Agency (CISA), and the U.S. Treasury Department (Treasury) issued a joint statement highlighting the recent cryptohacking efforts of several groups associated with the North Korean government. The joint statement concludes that the recent Axie Infinity hack, which resulted in the theft of more than $620 million in Ethereum, was carried out by Lazarus Group and APT38, two North Korean organizations known for engaging in cybercrime and cryptocurrency theft.

The cryptocurrency theft lawyers at Console & Associates P.C. are investigating the Axie Infinity incident, as well as the countless other crypto hacks which have robbed investors of hundreds of millions of dollars in cryptocurrency. We are currently seeking to interview as many victims of the breach as possible to determine how they were impacted and what legal options may be available to them. If you would be willing to participate in the investigation and would like to have a free consultation and case evaluation, please contact us as soon as possible.

According to the most recent data, hackers and other bad actors managed to steal more than $3.2 billion in cryptocurrency in 2021. This represents a 516% increase from 2020. Cryptotheft is quickly becoming a major threat to investors, who place a tremendous amount of trust in the various companies that facilitate these transactions. If a company is negligent in its maintenance of investors’ data or otherwise fails to protect investors’ cryptocurrency, it may be liable through a cryptocurrency theft lawsuit.

The New Wave of Cryptocurrency Hacks

According to the joint statement by the FBI, CISA, and Department of Treasury, the most recent wave of cryptohacks involve social engineering attacks targeting cryptocurrency trading apps. A social engineering cyber attack involves sending employees of an organization a seemingly innocuous email, either asking them to download and install a certain program or to provide the sender with sensitive information. These emails come from seemingly legitimate sources, so employees often fall for these tactics. The most common example of a cyberattack that relies on social engineering is phishing; however, there are several other types of attacks that use social engineering.

In its April 2022 statement, the federal government explains that “The Lazarus Group used AppleJeus trojanized cryptocurrency applications targeting individuals and companies—including cryptocurrency exchanges and financial services companies—through the dissemination of cryptocurrency trading applications that were modified to include malware that facilitates theft of cryptocurrency.”

The specific emails at issues involved what the federal government calls “Tradertraitor.” The emails target “employees of cryptocurrency companies—often working in system administration or software development/IT operations (DevOps)—on a variety of communication platforms. The messages often mimic a recruitment effort and offer high-paying jobs to entice the recipients to download malware-laced cryptocurrency applications.”

What Options Do Investors Have After Suffering Losses Due to Cryptocurrency Hacks?

Given that those orchestrating these cyberattacks are based overseas—in North Korea, no less—the likelihood of holding these individuals accountable for investor losses seems low. Even if the individual parties could be located, the fact that they are working at the behest of the North Korean government means they are essentially immune from claims filed in the United States.

Of course, there are a host of other companies who are involved in these hacks, albeit not intentionally. However, under U.S. law, companies that negligently maintain investor information and fail to implement the security systems necessary to protect investors from these types of losses may be held liable for investors’ losses. Of course, these lawsuits are a relatively new concept, as cryptocurrency hasn’t been around that long. That said, experienced cryptocurrency lawyers can assist aggrieved investors in bringing a claim against all potentially liable parties in hopes of getting reimbursed for their losses.

Discuss Your Case with a Knowledgeable Cryptocurrency Lawyer Today

At Console & Associates, P.C., our experienced cryptotheft lawyers can determine the most appropriate remedy and advise you on how to pursue your claim. We understand the frustration—and even embarrassment—you may be feeling. However, nothing about this situation is your fault—hackers target organizations en masse, and if just one in a thousand attacks is successful, they can still turn a profit. If you’ve suffered cryptocurrency losses and want to learn about your options, call Console & Associates, P.C. to schedule a free consultation today. You can reach us by phone at 866-778-5500 or through our online contact form.