North Korea-backed threat actors have been targeting crypto platforms more than ever in 2023, although the total amount of digital currency stolen has decreased compared to the previous year. According to a report by crypto research firm Chainalysis, North Korean adversaries managed to steal just over $1.0 billion in 2023, a significant drop from the $1.7 billion stolen in 2022.
The spike in 2022 was largely attributed to a major heist on decentralized finance (DeFi) products, where North Korean hackers stole approximately $1.19 billion, accounting for 70% of all crypto gains. However, in 2023, the global DeFi market experienced a decline, resulting in North Korean hackers gaining less from targeting DeFi protocols.
Chainalysis researchers believe that this shift in trend can be attributed to two main factors. Firstly, DeFi protocol developers have improved their operational security, focusing more on implementing and maintaining robust security systems. Secondly, the drop in the value of DeFi assets in 2023 also impacted the gains from DeFi hacking globally.
The global value lost in DeFi hacks decreased by 63.7% year-over-year in 2023, with the median loss per DeFi hack dropping by 7.4%. While the overall number of crypto hacks increased in 2023, the number of DeFi hacks specifically declined by 17.2%. North Korean groups also saw a decrease in gains from DeFi hacks, stealing $428.8 million in 2023 compared to $1.19 billion in 2022.
To make up for the loss of income from DeFi hacking, North Korean hackers diversified their targets in 2023, expanding their attacks to include centralized crypto platforms and crypto wallets such as Atomic Wallet, Alphapo, and Coinspaid.
This shift in tactics highlights the adaptability and resilience of North Korean threat actors in the ever-evolving landscape of cybercrime. As they continue to explore new avenues for illicit gains, it is crucial for the crypto community to remain vigilant and enhance their security measures to protect against such threats.