N Korea hackers stole $1.3bn of crypto this year – report
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A recent study has revealed that hackers affiliated with North Korea were responsible for stealing a significant portion of the $2.2 billion (£1.76 billion) in cryptocurrencies taken by cybercriminals globally this year. According to Chainalysis, a leading blockchain research firm, North Korean hackers accounted for over half of the stolen funds, amounting to $1.3 billion. This represents more than double the amount taken by these hackers in 2023.
The study highlights that many of these thefts may be connected to North Korean hackers posing as remote IT workers to infiltrate crypto companies and other tech firms. This sophisticated approach is part of a broader pattern of cybercrime linked to the isolated state, which has been known to use cyberattacks to finance its activities.
The increase in cryptocurrency theft coincides with a rise in the price of bitcoin, which has more than doubled in 2024. This surge is partly driven by expectations surrounding the crypto-friendly policies of incoming US president Donald Trump, who is expected to be more favorable to digital currencies than his predecessor, Joe Biden.
Despite the rise in crypto thefts, the total amount stolen in 2024 saw a 21% increase compared to the previous year, although it still falls below the record levels seen in 2021 and 2022. The report underscores that the growing scale of cryptocurrency theft highlights the increasing complexity of the cyber threats faced by the industry. Chainalysis cautioned that the crypto sector must take stronger measures to address this evolving threat landscape.
A significant portion of the stolen cryptocurrency this year was due to the compromise of private keys. These keys are essential for accessing users’ assets on crypto platforms, and when they are stolen, it can lead to devastating losses. Since centralized exchanges manage substantial amounts of user funds, the theft of private keys can have far-reaching consequences for the entire crypto ecosystem.
Notable thefts this year include the equivalent of $300 million in bitcoin stolen from the Japanese exchange DMM Bitcoin and nearly $235 million from WazirX, an India-based exchange. These incidents highlight the ongoing risks that cryptocurrency platforms face from hackers and the challenges in securing digital assets.
North Korea’s role in cryptocurrency theft is not new. The US government has long maintained that North Korea uses cybercrime, including cryptocurrency theft, to bypass international sanctions and fund its regime’s activities, including its weapons programs. Last week, a federal court in St. Louis indicted 14 North Korean nationals accused of participating in a long-running conspiracy to extort funds from US companies and funnel money to North Korea’s weapons development.
The US State Department has responded by offering a reward of up to $5 million for any information that could help in the investigation of this alleged scheme. The move underscores the growing concern over North Korea’s cyber capabilities and its use of digital currencies to circumvent sanctions.
The rise in crypto thefts this year, particularly those linked to North Korea, serves as a reminder of the vulnerabilities within the cryptocurrency market. As digital currencies gain in value and popularity, they also become a more attractive target for hackers and state-sponsored cybercriminals. The crypto industry must continue to enhance its security measures to protect against such sophisticated attacks.
This surge in thefts also raises broader questions about the regulatory landscape for cryptocurrency exchanges and the need for stronger international cooperation in tackling cybercrime. With the continued growth of the crypto market, addressing these security concerns is crucial to ensure its stability and legitimacy.
As the industry grapples with these challenges, the role of governments, regulatory bodies, and cryptocurrency firms themselves will be critical in safeguarding the future of digital assets. The ongoing threats from state-backed hackers like North Korea highlight the need for vigilance and robust cybersecurity practices in the rapidly evolving world of cryptocurrency.
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