Dubai, UAE - North Korea is behind the theft of over $1 billion in digital assets from a cryptocurrency exchange, the FBI claimed on Wednesday.

Hackers stole about $1.5 billion in digital assets from Dubai-based crypto exchange Bybit on Friday, marking the biggest cryptocurrency heist ever recorded, according to the company.

The FBI warned that the assets will be laundered and eventually converted into currency.

"FBI refers to this specific North Korean malicious cyber activity as 'TraderTraitor,'" the FBI said in a public announcement.

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"TraderTraitor actors are proceeding rapidly and have converted some of the stolen assets to Bitcoin and other virtual assets dispersed across thousands of addresses on multiple blockchains," the agency said.

"It is expected these assets will be further laundered and eventually converted to fiat currency."

Fiat currency refers to government-issued currency that is not backed by a physical commodity such as gold.

Bybit has offered a bounty to those that help them recover the losses, setting up an online system to trace and freeze stolen funds.

Chief executive Ben Zhou said transparency was not just a principle, but "our most potent weapon" against cybercrime.

"We are taking a stand to ensure that every transaction is visible and every hacker is held accountable," said Zhou.