TLDR
- North Korea’s Lazarus Group allegedly stole $23 million from UK-registered crypto platform Lykke, forcing its closure
- The hack targeted Bitcoin and Ethereum networks, with stolen funds allegedly laundered through platforms that circumvent money-laundering controls
- Lykke founder Richard Olsen, great-grandson of Swiss banking patriarch Julius Baer, has been declared bankrupt and faces criminal investigations in Switzerland
- Over 70 customers filed legal action claiming £5.7 million in losses after the platform froze trading in December 2023
- UK Financial Conduct Authority had previously warned about Lykke in 2023 for operating without proper authorization
The UK Treasury has blamed North Korea’s Lazarus Group for a $23 million cryptocurrency theft that forced the closure of British-registered exchange Lykke. The attack targeted both Bitcoin and Ethereum networks, according to the Office of Financial Sanctions Implementation.
Lykke operated from Switzerland’s “crypto valley” in Zug while maintaining UK registration. The platform offered zero-fee cryptocurrency trading before the hack forced it to suspend operations in December 2023.
Richard Olsen founded Lykke in 2015. He is the great-grandson of Swiss banking patriarch Julius Baer.
The company lost Bitcoin, Ethereum, and other cryptocurrencies in the breach. Despite promises to return customer funds, the platform froze trading after the attack.
“The attack has been attributed to malicious Democratic People’s Republic of Korea cyberactors, who stole funds on both the Bitcoin and Ethereum networks,” the Treasury’s OFSI stated. The stolen funds are suspected to be part of Pyongyang’s broader effort to fund nuclear weapons programs.
Israeli cryptocurrency research firm Whitestream also accused Lazarus of the hack. They claimed the attackers laundered stolen funds through two cryptocurrency companies known for facilitating transaction obfuscation.
Experts Question Attribution
Other researchers disputed these conclusions about Lazarus involvement. They argued the current evidence is insufficient to identify the exchange hackers definitively.
Some security experts claim it’s too early to confirm North Korea’s role. They say more analysis is needed before making firm attributions.
The Financial Conduct Authority issued warnings about Lykke in 2023. The regulator noted the company was neither registered nor authorized to offer financial services to UK consumers.
This regulatory warning came before the hack occurred. However, it wasn’t enough to prevent users from investing in the platform.
Legal Fallout and Bankruptcy
More than 70 customers brought a winding-up petition in UK courts. They claimed losses totaling £5.7 million from the company’s closure.
A UK court ordered Lykke to be liquidated in March 2025. Interpath Advisory was appointed to handle asset distribution and manage the liquidation process.
Lykke’s Swiss parent company entered liquidation last year. The closure affected customers across multiple jurisdictions.
Founder Richard Olsen was declared bankrupt in January 2025. British legal filings indicate he faces criminal investigations in Switzerland.
Olsen has not responded to media requests for comment. The criminal investigations relate to his role in the company’s operations and closure.
The Lazarus Group has been linked to numerous cryptocurrency heists globally. They use various techniques to breach exchange security and launder stolen funds through networks of digital transactions.
