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North Korea’s Enormous Crypto Hacks Redefine Scale and Strategy

A pair of tightly executed cyberattacks have become milestones in cryptocurrency theft in 2026 due to their sheer size. These two incidents, targeting Drift Protocol and KelpDAO, account for roughly three quarters of all recorded crypto losses through April, revealing a shift toward fewer, higher-dollar operations. Based on a report from TRM Labs, security researchers..

The post North Korea’s Enormous Crypto Hacks Redefine Scale and Strategy appeared first on Security Boulevard.

Ransom & Dark Web Issues Week 5, April 2026

ASEC Blog publishes Ransom & Dark Web Issues Week 5, April 2026           Emergence of a new ransomware group, M3RX Data from a South Korean religious organization sold on DarkForums ShinyHunters claims a data leak from a US interactive media company

How a simple consumer data breach spiralled into a national security crisis in US-South Korea relations

Washington’s focus on online retailer Coupang has led to accusations that the Trump administration is tying issues of national security to domestic corporate matters

When South Korea’s biggest online retailer revealed last year that a data breach had compromised tens of millions of customer accounts, it appeared to be a corporate crisis. But five months later the issue has grown into a diplomatic storm, threatening to further degrade relations between Seoul and the Trump administration.

Coupang, often described as South Korea’s answer to Amazon, is a US-incorporated company whose business is overwhelmingly based in South Korea. Headquartered in Seattle and listed on the New York Stock Exchange, it is run by Korean-American billionaire Bom Kim. In November last year the company disclosed that a former employee had stolen an internal security key, enabling unauthorised access to data from 33.7 million users.

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© Photograph: Anthony Wallace/AFP/Getty Images

© Photograph: Anthony Wallace/AFP/Getty Images

© Photograph: Anthony Wallace/AFP/Getty Images

North Korea’s Lazarus APT stole $290M from Kelp DAO

North Korea-linked Lazarus Group stole $290M from Kelp DAO by abusing LayerZero. A second $95M attempt was stopped.

Hackers tied to the North-Korea linked group Lazarus APT carried out a $290M crypto theft targeting Kelp DAO.

Earlier today we identified suspicious cross-chain activity involving rsETH. We have paused rsETH contracts across mainnet and several L2s while we investigate.

We are working with @LayerZero_Core, @unichain, our auditors and top security experts on RCA.

We will keep you…

— Kelp (@KelpDAO) April 18, 2026

Kelp DAO is a decentralized finance (DeFi) protocol built on the Ethereum ecosystem that focuses on a concept called liquid restaking. In simple terms, it lets users earn more rewards from their crypto without locking it up.

Attackers manipulated LayerZero infrastructure, forcing systems to rely on compromised nodes, then issued a malicious command to drain funds.

This is one of the biggest DeFi hacks of 2026 🚨

Here’s what just happened:

Kelp DAO’s rsETH bridge got exploited through LayerZero.

Around 116,500 rsETH was drained.

That’s $293M gone in minutes.

Main drain transaction:… pic.twitter.com/9ZfHqUUsWN

— StarPlatinum (@StarPlatinum_) April 18, 2026

After the breach, the platform froze activity and blocked wallets, stopping a second attempted theft worth about $95M.

“Kelp detected the anomaly, paused all relevant contracts on Ethereum mainnet and L2s, blacklisted all wallets associated with the exploiter, and engaged SEAL-911.” wrote Kelp. “A subsequent attempt by the exploiter, leveraging a falsely verified phantom packet to target an additional 40,000 rsETH (~$95M), was fully mitigated by these interventions.”

Kelp DAO lets users deposit ETH, restake it via EigenLayer, and receive rsETH to earn extra rewards. It relies on LayerZero to verify transactions across chains. The attack didn’t exploit the core protocol but targeted the verification layer.

LayerZero checks transactions using multiple servers (RPCs). Attackers hacked two of them and used them to send fake but valid-looking messages.

“On April 18, 2026, LayerZero Labs’ DVN became the target of a highly sophisticated attack, likely attributable to the Lazarus Group, more specifically TraderTraitor. The attack was specifically engineered to manipulate or poison downstream RPC infrastructure by compromising a quorum of the RPCs the LayerZero Labs DVN relied upon to verify transactions. It was not done through an exploit to the protocol, DVN, key management or other means.” reports LayerZero. “Rather, the attacker was able to gain access to the list of RPCs our DVN uses, compromise two of them – which were independent nodes running on separate clusters without direct connection to each other – and swap out binaries running the op-geth nodes. Because of our least-privilege principles, they were unable to compromise the actual DVN instances. However, they used this pivot point to execute an RPC-spoofing attack.”

Then they launched a DDoS attack on the remaining servers, forcing the system to rely on the compromised ones. This allowed malicious transactions to pass. The root cause was Kelp DAO’s insecure “1-of-1” verifier setup, meaning only one DVN checked transactions. This created a single point of failure. Best practice requires multiple independent verifiers, which would have blocked the attack even if one node was compromised.

LayerZero reported that the breach only affected its rsETH setup and did not spread to other apps, thanks to LayerZero’s modular design.

LayerZero confirmed its infrastructure and protocol worked as designed, isolating the damage. The incident highlights a new type of state-level attack targeting off-chain components like RPCs, rather than core blockchain systems. After the breach, compromised nodes were replaced, and stronger multi-verifier configurations are now being enforced to prevent similar attacks.

LayerZero says the hack could have been avoided if Kelp DAO had used multiple verifiers (multi-DVN), the industry standard.

“Industry best practice — and LayerZero’s express recommendation to all integrators — is to configure a multi-DVN setup with diversity and redundancy. This means no single DVN should represent a unilateral point of trust or failure.” continues the LayerZero’s statement. “Operating a single-point-of-failure configuration meant there was no independent verifier to catch and reject a forged message. LayerZero and other external parties previously communicated best practices around DVN diversification to KelpDAO. Despite these recommendations, KelpDAO chose to utilize a 1/1 DVN configuration.”

Kelp DAO refused accusation, saying it followed its default setup and didn’t manage the compromised infrastructure. It’s now focused on limiting damage, with partners like Arbitrum Security Council freezing funds. The impact spread across DeFi, with Aave losing nearly $8B in value.

“Kelp’s priority is our users and preventing contagion across DeFi. We are working with all ecosystem partners to analyse the impact, rally support, and explore all avenues of mitigation.” concludes Kelp. “We are concurrently assessing the potential next steps regarding protocol unpausing, impact assessment, and the way forward, and working with Aave, LZ, and all other key stakeholders.”

Follow me on Twitter: @securityaffairs and Facebook and Mastodon

Pierluigi Paganini

(SecurityAffairs – hacking, Lazarus APT)

Ransom & Dark Web Issues Week 3, April 2026

ASEC Blog publishes Ransom & Dark Web Issues Week 3, April 2026           Emergence of New Ransomware Groups: TiMC, BlackWater, and Lamashtu [1], [2], [3] NoName05716 Claims DDoS Attacks on South Korean Public & Private Sectors [1], [2], [3] VECT & TeamPCP Campaign: Supply Chain Attack Exploiting Global Travel Platform

March 2026 Dark Web Breach Trends Report

Alerts this report is based on reports of data breaches and the sale of initial access rights posted on deep web-dark web forums. some parts of the report contain information that cannot be fully verified as factual due to the nature of the source. Major Issues Multiple breach claims by ShinyHunters. a wide range of […]

Ransom & Dark Web Issues Week 2, April 2026

ASEC Blog publishes Ransom & Dark Web Issues Week 2, April 2026           Emergence of New Ransomware Group ‘KryBit’ Gunra, Ransomware Attack Targeting South Korean Pharmaceutical Company DragonForce, Ransomware Attack Targeting Egyptian Generic Drug Developer and Manufacturer

Phishing LNK files and GitHub C2 power new DPRK cyber attacks

DPRK-linked hackers use GitHub C2s, starting attacks via phishing LNK files that drop a PDF and PowerShell script in South Korea.

North Korea-linked threat actors target South Korean organizations using GitHub as C2 servers. The attack chain starts with phishing emails carrying obfuscated LNK files that drop a decoy PDF and a PowerShell script to advance the intrusion.

“FortiGuard Labs recently detected a series of LNK files targeting users in South Korea. These attacks use a multi-stage scripting process and leverage GitHub as Command and Control (C2) infrastructure to evade detection.” reads the report published by FortiGuard Labs. “Although these LNK files can be traced back to 2024, earlier versions had less obfuscation and contained significant metadata, allowing us to track similar attacks spreading the XenoRAT malware.”

The attacker recently changed tactics, embedding decoding functions and encoded payloads directly in LNK files. Decoy PDF titles show a focus on targeting companies in South Korea to expand surveillance.

Attackers use LNK files with embedded scripts to launch PowerShell commands from GitHub. Early versions hid C2 data with simple obfuscation, while later ones added decoding functions and shared metadata like “Hangul Document.” In recent attacks, they removed metadata and used encoded payloads. The LNK drops a decoy PDF to distract victims while the malicious script runs silently.

“In the latest attacks, the threat actor has removed this identifying metadata, leaving only a decoding function within the arguments.” reads the report published by FortiGuard Labs. “This function p1 takes three parameters: location, length, and an XOR key. It first defines a path to drop the decoy PDF, then decodes both the PDF and a PowerShell script for the next stage of the attack.”

The PowerShell script runs checks to detect analysis tools and stops if it finds them, helping attackers to remain under the radar. It then decodes payloads, stores them in temporary folders, and creates persistence using a scheduled task that runs silently.

The script collects system details and sends them to GitHub using hidden repositories.

Attackers rely on multiple accounts, both active and dormant, to manage operations and avoid detection while continuing data exfiltration.

“Our investigation into this GitHub account, motoralis, reveals consistent activity dating back to 2025, which matches our threat-hunting results on earlier LNK file variants. Other activities involve multiple GitHub accounts in similar attacks, including God0808RAMAPigresy80entire73pandora0009, and brandonleeodd93-blip.” continued the report. “A broader analysis of the attacker’s infrastructure reveals a strategic use of both dormant and active accounts. While some accounts, like entire73, remain largely inactive for months, others, like brandonleeodd93-blip, were activated just weeks ago to provide immediate redundancy. The motoralis account functions as the primary operational hub, showing a surge in private repository contributions that closely align with the recent spike in LNK-based phishing lures. By conducting all activity within private repositories, the threat actor effectively conceals their malicious payloads and exfiltrated logs from public view while leveraging the high reputation of the GitHub domain to stay under the radar of corporate security filters.”

In the final stage, the script keeps a stable link with the C2 by regularly pulling commands from GitHub. It uses scheduled tasks to stay active and let attackers run actions remotely.

“We identified a “keep-alive” script used by the attacker to stay visible. This script specifically gathers network configuration details and uploads them to GitHub using the PUT method. The logs are stored at: hxxps://api[.]github[.]com/repos/motoralis/singled/contents/jjyun/network/<Date>_<Time>-<IP_Address>-Real.log.” continues the report. “This automated check-in allows the threat actor to monitor the victim’s network status in real-time, enabling further actions or more in-depth exploitation within the compromised environment.”

A keep-alive script collects network details and uploads logs to GitHub, allowing real-time monitoring and further exploitation of the compromised system.

This campaign relies on strong social engineering and multiple phishing lures. Instead of complex malware, the attacker uses built-in Windows tools and LolBins to stay stealthy and reduce detection.

They abuse GitHub as C2, hiding malicious traffic in normal encrypted connections. Since many networks trust GitHub, data exfiltration often goes unnoticed. This mix of legit tools and services makes detection difficult, so monitoring unusual scripting activity is key.

“This combination of legitimate tools and trusted web services creates a highly effective infection chain. To stay protected, users should stay alert against untrusted documents and monitor for unusual PowerShell or VBScript activity in their environments.” concludes the report.

Follow me on Twitter: @securityaffairs and Facebook and Mastodon

Pierluigi Paganini

(SecurityAffairs – hacking, North Korea)

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