North Korean hackers stole $600 million in cryptocurrency in 2023

ReportJanuary 8, 2024Editorial DepartmentCryptocurrency/Financial Crime

In 2023, threat actors affiliated with the Democratic People’s Republic of Korea, also known as North Korea, have looted at least $600 million in cryptocurrency.

Blockchain analytics firm TRM Labs said last week that North Korea “accounted for almost a third of the funds stolen in cryptocurrency attacks last year” despite a 30% decrease from $850 million in 2022.

“The average damage caused by hacking attacks conducted by North Korea is ten times that of hacking attacks not related to North Korea.”

there are signs additional violations Targeting the cryptocurrency industry by the end of 2023 could push the figure to around $700 million.

Attacks against cryptocurrency companies are not new for North Korean state-backed actors, who have stolen approximately $3 billion since 2017.

These financially motivated attacks are seen as an important revenue-generating mechanism for sanctioned countries to fund their weapons of mass destruction (WMD) and ballistic missile programs.

These intrusions use social engineering to lure targets, often aiming to compromise the private keys and mnemonic phrases used to protect digital wallets, then use them to gain unauthorized access to the victim’s assets and transfer them to the threat actor’s control. wallet. .

“They are then mostly exchanged for USDT or Tron and converted into hard currency through high-volume OTC brokers,” TRM Labs said.

The company further pointed out that North Korean hackers continue to explore other money laundering tools after the U.S. Treasury Department sanctioned a cryptocurrency mixing service called Sinbad for handling the majority of its proceeds, indicating that North Korean hackers are still evolving despite heavy law enforcement pressure.

“With nearly $1.5 billion stolen in the past two years alone, North Korea’s hacking capabilities require continued vigilance and innovation from businesses and governments,” TRM Labs said.