G7 Scrambles for Crypto Defense as North Korea’s $3B Hack Spree Exposes Global Weakness

Pyongyang’s Lazarus Group just became the world’s most profitable crypto hedge fund—no SEC filings required. After plundering $3B from exchanges and bridges since 2017, their blockchain heists are forcing regulators into an awkward tango: balancing privacy ideals with Cold War-grade security upgrades.

The wake-up call? A single stolen private key let hackers drain $625M from Axie Infinity’s Ronin Bridge—proving DeFi’s ’trustless’ mantra cuts both ways. Now G7 working groups are drafting unprecedented chain surveillance protocols, while Treasury officials quietly seethe about investigating crimes where the perps own the crime scene.

Expect heated debates over privacy coin bans, mandatory KYC for smart contracts, and whether blockchain’s founding ethos can survive its own success. Meanwhile, Lazarus converts their loot to Tether—because even anarcho-capitalists need stable collateral when shorting the South Korean won.

As cryptocurrency becomes more mainstream, so do the risks, and now, world leaders are taking notice. The Group of Seven (G7) nations are reportedly planning to address a rising concern that goes far beyond price volatility or regulations: North Korea’s growing crypto theft operations, which may be secretly funding its nuclear weapons programs.

This isn’t just about hacking for money—it’s cyber warfare in disguise. 

Lazarus Group Sparking Crypto Warfare

In 2024 alone, North Korea-linked groups are believed to have stolen over $1.3 billion from crypto platforms in 47 incidents. And the problem has only worsened in 2025 as the crypto hacks have crossed $1.74 billion in the first five months, more than all of last year.

The Lazarus Group, a well-known North Korean hacking organization, is said to be behind the record $1.4 billion Bybit hack, among others. 

Over $92.4 million was stolen in April alone, according to blockchain security firm Immunefi. Two major incidents, $70 million lost by UPCX and $7.5 million drained from KiloEx, accounted for most of the damage.

But the danger goes beyond outside attacks. 

From Cybercrime to Global Threat

North Korea has been planting agents inside crypto companies, posing as freelance developers, to quietly steal from within. This insider strategy is far harder to detect and prevent.

Even major platforms like Kraken have had close calls, exposing a North Korean operative who tried to land a job using fake credentials. 

Experts believe these attacks are directly tied to North Korea’s efforts to evade sanctions and quietly funnel stolen funds into the country’s missile and nuclear programs.

G7 Prepares For Rising Lazarus Group Hacks

Now, with the G7 preparing to meet in Canada, the conversation is turning towards securing digital space. Meanwhile, this isn’t just a “crypto problem” anymore, it’s a global security issue. 

Experts believe that coordinated international action could lead to tougher KYC norms, smarter hiring practices, and shared threat intelligence across borders.

The future of crypto security might not lie in another wallet upgrade, but in global cooperation to stop digital warfare before it gets worse.