Blockchain analytics firm Chainalysis reported an unforeseen surge in cyber attacks orchestrated by North Korea-linked hackers against cryptocurrency platforms in 2023.
According to data spanning from 2016 to 2023, these hackers breached 20 crypto platforms last year-an all-time high within this timeframe.
Decreased But Significant Crypto Pilfering
Despite a decrease from the record $1.7 billion stolen in 2022, North Korea-affiliated hackers managed to pilfer slightly over $1 billion in crypto assets in 2023.
"North Korea-linked hacks have been on the rise over the past few years, with cyber-espionage groups such as Kimsuky and Lazarus Group utilizing various malicious tactics to acquire large amounts of crypto assets," Chainalysis said on Wednesday, Jan. 24.
According to CNBC, this noteworthy amount only shows the persistent threat posed by these hacking entities and the escalating challenges faced by the crypto community.
Another report from blockchain intelligence firm TRM Labs presented a different figure, stating that hackers tied to North Korea stole at least $600 million in crypto during 2023.
With that being said, the varying estimates highlight the intricate nature of tracking and quantifying such illicit activities within the crypto space.
Notable Heists and Sanctions
The FBI confirmed in September that North Korea's Lazarus Group was responsible for a $41 million theft in crypto assets from the online casino and betting platform Stake.com.
Subsequently, on November 29, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) imposed sanctions on Sinbad.io, identified as a key money-laundering tool for Lazarus Group.
Sinbad.io played a role in laundering millions of dollars in crypto stolen from various hacks, including those targeting the Horizon Bridge and Axie Infinity.
It should be noted that earlier this year, Lazarus hackers were able to steal $1.2 million of Bitcoin using Coin Mixer.
Cryptocurrency Funding for Nuclear Ambitions
Previous research has revealed that North Korea-affiliated hackers deploy stolen crypto funds to finance the regime's nuclear weapons programs. Facing multiple United Nations sanctions since its first nuclear test in 2006, the state relies on alternative funding sources to sustain its nuclear activities.
North Korean Crypto Hackers Will Continue to Operate
In its Jan. 5 report, TRM Labs wrote that for the past two years alone, roughly $1.5 billion were stolen by a group of state-sponsored hackers from North Korea.
Because of the alarming impact of crypto hacks and scams all over the place, governments and businesses are urged to exercise vigilance when dealing with crypto.
Despite strides in cybersecurity and international collaboration, 2024 is anticipated to witness further disruptions from one of the world's most prolific cyber threats.
Stakeholders remain on high alert to counter the persistent and innovative strategies employed by North Korea-linked hackers. It's clear that crypto scams show no signs of stopping as long as these cybercriminals exist.
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