Cryptocurrency stolen by North Korea-linked hackers has seen a dramatic decrease of 80% from 2022. However, according to blockchain forensics firm Chainalysis, this decline does not necessarily indicate improved security or reduced criminal activity. The total amount stolen by North Korea-linked hackers as of September 14, 2023, stands at $340.4 million, compared to the record $1.65 billion stolen in 2022.
Chainalysis points out that the decrease in stolen funds should not be seen as a positive development. The high benchmark set by the previous year’s thefts shows that the cryptocurrency ecosystem is still vulnerable to cyber attacks. The firm warns that a single large hack could easily push the stolen funds for 2023 beyond the billion-dollar threshold.
Recent events have further highlighted the ongoing threat posed by North Korea’s Lazarus Group. Over the past 10 days, the group was linked to two separate hacks, resulting in a combined loss of over $95 million. These attacks accounted for about 30% of all crypto funds stolen through hacks this year.
Chainalysis also reveals that North Korean hackers have increasingly relied on Russian-based exchanges to launder their illicitly obtained funds. This trend has been observed since 2021, with one of the largest laundering events involving $21.9 million transferred from Harmony’s $100 million bridge hack in June 2022. Additionally, sanctioned cryptocurrency mixers Tornado Cash and Blender have been utilized by the Lazarus Group in high-profile hacks, including the one on the Harmony Bridge.
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The stolen funds are believed to be used by North Korea to support its nuclear missile program. As a result, the United Nations is taking steps to combat North Korea’s cybercrime tactics on an international level. Efforts to curtail these activities align with the crucial goal of preventing funding for illicit activities that pose risks to global security.
To counter these hacks, Chainalysis suggests increasing smart contract audits as a means to make it more challenging for the hackers. By ensuring the robustness and security of smart contracts, cryptocurrency platforms can better protect their users’ funds. This proactive approach can help prevent future thefts and limit the ability of hackers to exploit vulnerabilities in the ecosystem.
Overall, although there has been a decline in the amount of cryptocurrency stolen by North Korea-linked hackers, it is essential to remain vigilant. The threat posed by these hackers is still significant, and the potential for large-scale thefts remains high. Ongoing efforts by organizations like Chainalysis and the United Nations help address this issue and mitigate risks to the cryptocurrency ecosystem and global security. Combining improved security measures, such as smart contract audits, with international cooperation and regulation can lead to a safer and more resilient cryptocurrency landscape.
