The Lykke exchange in the UK collapsed after being hacked by North Korea-linked hackers who stole 23 million USD in Bitcoin, exposing geopolitical risks in the cryptocurrency sector.
A UK-registered cryptocurrency exchange, Lykke, was forced to cease operations and enter liquidation after a sophisticated cyber attack. UK authorities accused actors related to North Korea of seizing Bitcoin worth 17 million British pounds (equivalent to 23 million USD), dealing a severe blow to the exchange and investors. The Office of Financial Sanctions Implementation (OFSI) of the UK Treasury officially attributed responsibility to "malicious cyber actors of the Democratic People's Republic of Korea."
Cybersecurity analysts believe the Lazarus group - a notorious hacker organization suspected of operating under Pyongyang's patronage - is likely the perpetrator, aiming to serve the goal of financing the nuclear weapons program.
If confirmed, this would be the largest cryptocurrency asset theft carried out by this group in the UK. Blockchain analysis companies like Whitestream reported tracking the money trail and discovered the funds were laundered through platforms that ignore anti-money laundering (AML) regulations, making tracing particularly challenging.
Lykke's collapse became a serious warning to the market. Founded in 2015 by Richard Olsen, Lykke had promised to provide a commission-free trading platform and quickly attracted a large number of users. However, the attack erased all advantages. The company officially froze transactions in December 2023 and although it previously claimed the ability to reimburse customers, the situation was beyond control.
In March, a UK court ordered Lykke's liquidation after more than 70 customers sued to recover 5.7 million British pounds that were stuck. The case became even more complex when the UK Financial Conduct Authority (FCA) revealed they had warned since 2023 that Lykke was not licensed to provide services to consumers in the UK. The founder Richard Olsen himself was declared bankrupt in January this year and currently faces a criminal investigation in Switzerland.
