North Korean-linked hackers have stolen a record-breaking 2 billion USD in cryptocurrency this year, shattering previous records.
A report by blockchain analysis firm Chainalysis, cited by Bloomberg on Thursday, reveals that North Korea’s cryptocurrency heists have surged by over 50% compared to last year. The news outlet notes that Pyongyang’s cyber operations are becoming increasingly sophisticated and effective.
The dramatic spike in theft can be traced to a major hack in February targeting Bybit, a cryptocurrency exchange headquartered in Dubai, United Arab Emirates (UAE). In this audacious attack, North Korean hackers made off with 1.5 billion USD worth of Ethereum, marking the largest single theft in the history of digital assets.
The report highlights that North Korea is responsible for a staggering 60% of all cryptocurrency thefts globally this year, amounting to approximately 3.4 billion USD. Even more alarming, 76% of breaches targeting centralized services like exchanges have been attributed to North Korean operatives. The regime’s total haul from cryptocurrency theft is estimated to have reached at least 6.75 billion USD to date.
Analysts note that while North Korea has reduced the frequency of its attacks, it has pivoted to high-impact, sophisticated operations that inflict massive damage with each strike.
Another concerning trend is the infiltration of Western cryptocurrency firms and Web3 companies by North Korean information technology (IT) personnel using false identities. Once inside, these operatives escalate their access privileges before executing large-scale thefts.
The report also details how North Korea has refined its money laundering techniques, employing tactics such as splitting stolen funds across thousands of addresses to obfuscate their trail, and leveraging loosely regulated decentralized exchanges (DEX) and bridge services.
Andrew Fierman, who heads the National Security Intelligence division at Chainalysis, warns that cryptocurrency theft has become a vital revenue stream for the North Korean regime. He emphasizes that these ill-gotten gains are likely being funneled into the country’s weapons of mass destruction (WMD) and missile development programs, posing a significant threat to global security.