According to blockchain intelligence agency TRM, North Korean hackers stole round $600m in cryptocurrency in 2023, which is about one-third of the entire worth of such thefts.
However, this represents a 30% lower compared to the $850m stolen by hackers linked to the Democratic People’s Republic of Korea (DPRK) in 2022.
The researchers imagine that if extra crypto thefts dedicated within the final days of 2023 are attributed to DPRK, the entire quantity stolen final yr might enhance to as a lot as $700m, together with an assault on Orbit Chain on December 31, 2023, which resulted within the theft of greater than $80m price of crypto.
TRM researchers estimate that DPRK-based attackers have stolen a complete of $2.7bn price of crypto since 2017. Experts imagine that the North Korean authorities makes use of crypto thefts as a option to generate income within the face of worldwide sanctions concentrating on the regime.
TRM’s evaluation additionally revealed that crypto hacks carried out by North Korea are on common 10 occasions extra damaging than these not linked to Pyongyang.
How is North Korea Carrying Out Attacks?
The researchers acknowledged that North Korean hackers are using revolutionary techniques to evade worldwide legislation enforcement motion. For instance, after US sanctions and enforcement actions in opposition to crypto mixers Tornado Cash and ChipMixer, teams like Lazarus pivoted to different strategies to launder stolen crypto funds.
The major methodology utilized by DPRK-linked attackers to launch crypto heists is compromising the personal keys and seed phrases used to guard digital wallets. After compromising the keys, the hackers switch the victims’ digital belongings to a pockets tackle managed by North Korean operatives earlier than swapping the foreign money for USDT or Tron after which changing it to laborious foreign money utilizing high-volume OTC brokers.
TRM acknowledged that there have been “notable developments” in tackling crypto thefts, together with improved safety in exchanges and elevated worldwide collaboration in monitoring and recovering stolen funds. However, the agency predicts that North Korean hackers will proceed to be efficient on this area throughout 2024.
“With almost $1.5bn stolen previously two years alone, North Korea’s hacking prowess calls for steady vigilance and innovation from companies and governments,” acknowledged the researchers.