BITCOIN’s value has tanked in a shocking $1 trillion market crash as the FBI confirms who was behind the world’s biggest crypto heist.
The price of bitcoin hit its lowest level since November at just above $60,000 per unit, following the $1.5 billion heist.
The FBI has confirmed that North Korea was behind the cyber attack, and is allegedly using the stolen profit to fund Kim Jong-un‘s regime.
North Korean hacking group, Lazarus, gained access to Bybit’s digital wallet before emptying its contents.
Victim of the heist, Bybit, confirmed February’s record-breaking crypto theft.
Dubai-based Bybit was founded in 2018 and holds an impressive £15billion in assets and offers users various cryptocurrencies, including bitcoin and ether.
Ben Zhou, the CEO of Bybit, described the crime as “the worst hack in history“.
Bitcoin’s value peaked at above $109,000 last month, with Trump’s promise to make the United States the crypto capital of the world.
But investors are losing confidence in this dream, with the crypto heist causing it’s value to plummet to $60,000 per unit.
Co-Chair of the Hong Kong Web3 Association, Joshua Chu said: “Bitcoin’s fall below $80k shows that positive sentiments from a crypto-friendly administration and high-profile endorsements have run their course.”
Ether, the second-largest cryptocurrency by market value, has also fallen to its lowest since January, at $2,000 per unit.
Crypto traders have been warned not to “buy the dip,” as analysts make predictions about the future of the digital currency.
Analysts are investigating how deep the bitcoin price correction could go and are not ruling out a full-blown market crash.
Crypto traders are already beginning to pull money out of bitcoin-backed funds as fears about its security rise.
Trump’s proposed tariffs are also cause for concern, as investors worry they could lead to higher global inflation and slower growth.
The FBI is calling this type of cyber crime “TraderTraitor”.
TraderTraitor heists use what experts describe as a powerful and sophisticated system that can breach security layers and steal money.
After ripping digital money, they are to launder it through thousands of blockchain transactions to make the proceedings almost untraceable.
North Korea is known to operate a sophisticated cyber crime unit, and it is thought that heists like this one fund the cash-starved country, which has been hit by many sanctions over the years.
In 2022, a UN investigation found that cyber attacks are an “important revenue source” for Pyongyang’s nuclear and ballistic missile programme.
The heist exceeds the previous record sum of $1 billion stolen by the dictator Saddam Hussein from Iraq’s central bank before the 2003 war.
Other major cryptocurrency attacks in the past have seen hundreds of millions of pounds taken from people’s online wallets.
North Korea stole an estimated $800 million in crypto back in 2024, according to Redbord.
In 2022, it stole an estimated $1.7 billion in crypto, according to threat intelligence platform Recorded Future.
Bitcoin is a digital currency stored through an online network called the blockchain.
The cryptocurrency is created using a complex online process called mining, which uses supercomputers to create new Bitcoins using complex computer code.
You can invest in Bitcoin through trading platforms such as eToro or online wallet providers including Coinbase and Blockchain.
What are the dangers of investing in crypto?
THE Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services can make it hard for consumers to understand the risks. There is no guarantee that crypto can be converted back into cash as it depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
Before investing in any cryptocurrency, you should be aware of all the risks involved.
Their value is highly volatile and City watchdog the Financial Conduct Authority has warned investors should be prepared to lose all their money.
Investing in cryptocurrencies is not a guaranteed way to make money.
