North Korean hackers have been making headlines once again, this time for stealing a staggering $600 million in cryptocurrency in 2023. This amount represents a significant chunk of the total value of cryptocurrency heists, with blockchain intelligence firm TRM reporting a 30% decrease compared to the previous year’s $850 million stolen by DPRK-linked hackers.
The total amount stolen could potentially rise to $700 million if additional crypto heists attributed to North Korea are taken into account, such as the recent attack on Orbit Chain that resulted in over $80 million worth of crypto being taken. TRM researchers estimate that since 2017, DPRK-based attackers have stolen a total of $2.7 billion worth of cryptocurrency.
Experts believe that the North Korean government is using these crypto thefts as a way to generate revenue in the face of international sanctions. TRM’s analysis also revealed that crypto hacks carried out by North Korea are, on average, 10 times more damaging than those not linked to Pyongyang.
So how exactly are North Korean hackers perpetrating these attacks? According to researchers, they are employing innovative tactics to evade international law enforcement. For instance, following US sanctions and enforcement actions against crypto mixers like Tornado Cash and ChipMixer, groups like Lazarus have shifted to other methods to launder stolen crypto funds.
The primary method used by DPRK-linked attackers involves compromising the private keys and seed phrases used to protect digital wallets. Once these are compromised, the hackers transfer the victims’ digital assets to a wallet controlled by North Korean operatives before converting the currency to USDT or Tron and ultimately exchanging it for hard currency using high-volume OTC brokers.
While there have been advancements in combating crypto thefts, including improved security in exchanges and increased international collaboration in tracking and recovering stolen funds, TRM predicts that North Korean hackers will continue to be a force to reckon with in 2024.
“With nearly $1.5 billion stolen in the past two years alone, North Korea’s hacking capabilities demand constant vigilance and innovation from both businesses and governments,” stated the researchers.
As we move forward, it is crucial for the cryptocurrency community to stay alert and proactive in safeguarding against cyber threats posed by malicious actors like North Korean hackers.