Former Bank of England deputy governor urges early crypto safeguards as investigators trace record hack to North Korea’s Lazarus Group
Sir Jon Cunliffe, former Deputy Governor of the Bank of England, has called for early “guard rails” to protect Britain as cryptocurrency becomes more connected to mainstream banking. He said regulation is difficult to add later, while stressing that the Binance hack does not currently threaten the UK’s mainstream financial system because the exchange is not authorised or operated here.
Investigators at TRM Labs and Chainalysis believe North Korea’s state-backed Lazarus Group carried out the reported $6.3 billion attack, which they say was planned over many months. A targeted developer’s laptop may have given attackers the approvals to withdraw funds in 20 minutes; $3 billion has been frozen, and investigators estimate North Korea may gain up to $2.4 billion after laundering. The group is also blamed for the 2025 Bybit hack, then the largest at $1.5 billion.
In short
- Cunliffe urges early safeguards as crypto grows.
- Investigators suspect North Korea’s Lazarus Group.
- $3 billion is frozen; up to $2.4 billion may remain.
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The strongest fair case each way — we don't pick a winner.
The case for
Early safeguards could help protect consumers and the wider financial system before crypto becomes more deeply connected to mainstream banking, when rules may be harder to introduce. The scale and apparent planning of the reported hack, alongside the possibility that a state-backed group could obtain substantial funds, strengthens the case for setting clear security and accountability standards now.
The case against
Regulation should be proportionate to demonstrated risks: Cunliffe says this exchange is not authorised or operated in Britain, and the attack does not currently threaten the UK’s mainstream financial system. Moving too quickly could impose costs or restrictions on a developing sector before the benefits and risks of specific rules are clear, so safeguards could instead be targeted as crypto’s links to regulated finance grow.
Explained simply
Cryptocurrencies are digital assets that can be held and transferred without using a conventional bank. Exchanges such as Binance let people buy, sell and store them, while blockchain records can help investigators follow transfers; stolen funds may still be difficult to recover if they are moved through multiple services.
Sir Jon Cunliffe was a senior Bank of England official, and his comments concern how Britain should regulate crypto firms as they become more connected to banks and other financial services. Regulation can set safeguards for handling customers’ money and managing cyber risks, though applying rules to firms based or operating outside the UK can be difficult.
Lazarus Group is a hacking group that governments and investigators have linked to North Korea. Alleged thefts involving crypto matter because they can cause large losses for users and may provide funds to North Korea, while also raising questions about the security and oversight of digital-asset services.
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Originally published by Daily Mail as “Call for ‘guard rails’ to protect crypto currency in Britain after the record $6.3billion hack”.