- Experts and industry leaders propose new solutions against Lazarus’s hacking techniques.
- Security alliances suggest multisig wallet enhancements to combat hacks.
- Regulatory changes and security practices are being closely monitored.
Security experts and industry leaders are seeking simpler solutions to combat the Lazarus Group, a North Korean-linked syndicate, after over $2.17 billion in crypto thefts worldwide.
The Lazarus problem underscores the urgent need for improved security measures, spurring immediate industry action to prevent further financial damage and restore market confidence.
Security experts are advocating for new measures to tackle the “Lazarus problem” linked to North Korean cybercrime. The Lazarus Group has been responsible for over $2.17 billion in crypto thefts, prompting a call for new defense strategies. Von Fange, a security researcher, emphasized that modifying signature workflows can potentially prevent attacks similar to previous ByBit hacks involving $1.4 billion.
“When the signatures land on chain from the attacker, the game is over and that’s when you find out. Some could have been collected weeks or months ago. … Clever, evil, people are at this moment controlling projects’ computers, getting ready to try this again. We can save a billion dollars.” — Von Fange, Security Researcher, Security Alliance
The crypto community, including security experts and exchanges, is collaborating to implement better security solutions. New wallet providers, such as Best Wallet, are promoting multi-party computation (MPC) solutions that improve key management, potentially preventing exploits. Proposals like an “undo button” for multisig wallets are being discussed to mitigate thefts before completion.
Immediate consequences involve shifts in asset flows and security measures across affected exchanges. Industries are witnessing changes in liquidity due to exploits, as evidenced by $73 million stolen from Phemex. The crypto market’s resilience is being tested, with stakeholders urging regulated practices to prevent further incidents. Regulatory bodies might impose mandatory solvency audits and closer oversight of crypto mixers, ensuring exchange compliance and heightened security protocols.
Technological advancements, like MPC enhancements and effective multisig wallet workflows, might become standard. Such solutions could protect billions in assets annually. Regularly updating security measures will align with historical trends of adapting to evolving cyber threats. Experts believe coordinated industry efforts could effectively counter future hacking attempts.
