Poloniex Hack Analysis: North Korean Hacking Syndicate Lazarus Group Suspected in Wallet Breach


The recent breach of the hot wallet at Poloniex, a popular crypto exchange, is suspected to be the work of the Lazarus Group, a hacking syndicate backed by North Korea. This analysis is based on observations made by market research platform X-explore, which noted similarities between the tactics used in this attack and a previous breach on Stake.com. In this article, we will delve deeper into the details of the hack and discuss the possible reasons behind it.

The Private Key Leakage

According to X-explore, the breach at Poloniex was likely the result of a leakage of the private key. This crucial piece of information, if obtained by the hackers, would have given them access to the hot wallet. The Lazarus Group has been known for its sophisticated cybercriminal activities, and their involvement in this incident seems highly plausible.

Similar Tactics

X-explore's conclusion regarding the involvement of the Lazarus Group is based on the similarities between the tactics used in this attack and the previous breach on Stake.com. Both incidents share common characteristics, indicating a possible connection between the two. These observations further strengthen the suspicion that the North Korea-backed hacking syndicate is responsible for the Poloniex breach.

Immediate Response

Upon confirming the breach, Poloniex took immediate action by temporarily disabling the wallet system. This step was crucial to prevent further unauthorized access and protect users' funds. The exchange also collaborated with onchain analysts to investigate the incident and identify the extent of the damage.

Addressing the Issue

X-explore's analysis sheds light on the modus operandi of the hackers. The use of different addresses for storing different tokens is a common practice to enhance security. However, in this case, the hackers exploited this setup by using a middle address to swap ERC 20/TRC 20 tokens on a decentralized exchange and then transferring the ETH/TRX to a new address. This allowed them to bypass security measures and gain access to the hot wallet.

Recovering Stolen Assets

In a later update, Poloniex CEO Justin Sun stated that the team had successfully identified and frozen a portion of the stolen assets. This is a positive development in the aftermath of the breach, as it shows that the exchange is actively working to recover the funds. Sun also reassured users that the losses incurred were within manageable limits and that Poloniex's operating revenue would be sufficient to cover them. However, he did not provide a timeline for when deposits and withdrawals would resume.


The Poloniex hack, allegedly orchestrated by the Lazarus Group, highlights the growing threat posed by cybercriminals in the cryptocurrency space. It serves as a reminder of the need for robust security measures and constant vigilance. Poloniex's swift response and collaboration with experts demonstrate their commitment to protecting their users' funds. As the investigation continues, it is crucial for exchanges and users alike to remain cautious and take necessary precautions to safeguard their assets.

Frequently Asked Questions

Can I buy gold with my self-directed IRA?

Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. If you already have a retirement account, funds can be transferred to it.

The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.

You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contracts are financial instruments based on the price of gold. These financial instruments allow you to speculate about future prices without actually owning the metal. But physical bullion refers to real gold and silver bars you can carry in your hand.

Who owns the gold in a Gold IRA?

The IRS considers any individual who holds gold “a form of income” that is subject to taxation.

To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.

The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.

If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.

To find out what options you have, consult an accountant or financial planner.

Should you open a Precious Metal IRA

Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. You cannot recover any money you have invested. This includes investments that have been damaged by fire, flooding, theft, and so on.

This type of loss can be avoided by investing in physical silver and gold coins. These coins have been around for thousands and represent a real asset that can never be lost. You would probably get more if you sold them today than you paid when they were first created.

Consider a reputable business that offers low rates and good products when opening an IRA. It's also wise to consider using a third-party custodian who will keep your assets safe while giving you access to them anytime.

You won't get any returns until you retire if you open an account. Remember the future.

Should You Get Gold?

In times past, gold was considered a safe haven for investors in times of economic trouble. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.

The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.

Some experts think that this could change in the near future. They believe gold prices could increase dramatically if there is another global financial crises.

They also point out that gold is becoming popular because of its perceived value and potential return.

Consider these things if you are thinking of investing in gold.

  • The first thing to do is assess whether you actually need the money you're putting aside for retirement. It is possible to save enough money to retire without investing in gold. The added protection that gold provides when you retire is a good option.
  • Second, make sure you understand what you're getting yourself into before you start buying gold.There are several different types of gold IRA accounts available. Each account offers different levels of security and flexibility.
  • Remember that gold is not as safe as a bank account. It is possible to lose your gold coins.

You should do your research before buying gold. If you already have gold, make sure you protect it.

Can I keep physical gold in an IRA?

Gold is money, not just paper currency or coinage. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.

Many Americans now invest in precious metals. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.

Another reason is that gold has historically outperformed other assets in financial panic periods. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. Gold was one of the few assets that performed better than stocks during turbulent market conditions.

One of the best things about investing in gold is its virtually zero counterparty risk. Even if your stock portfolio is down, your shares are still yours. Gold can be worth more than its investment in a company that defaults on its obligations.

Finally, gold is liquid. This means you can easily sell your gold any time, unlike other investments. You can buy gold in small amounts because it is so liquid. This allows for you to benefit from the short-term fluctuations of the gold market.


  • You can only purchase gold bars at least 99.5% purity. (forbes.com)
  • Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
  • (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)

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How To

Tips for Investing in Gold

Investing in Gold is a popular investment strategy. This is because there are many benefits if you choose to invest in gold. There are many options for investing in gold. Some people purchase physical gold coins. Others prefer to invest their money in gold ETFs.

You should consider some things before you decide to purchase any type of gold.

  • First, verify that your country permits gold ownership. If so, then you can proceed. Or, you might consider buying gold overseas.
  • The second is to decide which kind of gold coin it is you want. You have the option of choosing yellow, white, or rose gold.
  • Thirdly, it is important to take into account the gold price. It is better to start small, and then work your way up. One thing that you should never forget when purchasing gold is to diversify your portfolio. You should invest in different assets such as stocks, bonds, real estate, mutual funds, and commodities.
  • Lastly, you should never forget that gold prices change frequently. Therefore, you have to be aware of current trends.


By: Terence Zimwara
Title: Poloniex Hack Analysis: North Korean Hacking Syndicate Lazarus Group Suspected in Wallet Breach
Sourced From: news.bitcoin.com/poloniex-hack-analysis-north-korean-hacking-syndicate-lazarus-group-suspected-in-wallet-breach/
Published Date: Mon, 13 Nov 2023 09:00:17 +0000

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