North Korean Hackers Loot More Than $200 Million In Crypto In 2023

North Korean hackers have stolen over $200 million worth of cryptocurrencies in 2023 alone. This hacking activity accounts for 20% of all the crypto assets stolen this year alone. North Korean hackers are known to target various projects in the crypto space.

North Korean hackers steal over $200M in crypto

The theft of these funds is part of over $2 billion that hackers looted over the last five years. This amount has been stolen through 30 different attacks in the space. Most of these hacking exploits focus on the decentralized finance (DeFi) space, with the main targets being cross-chain bridges.

While the year has recorded some serious hacks, last year was worse, with cybercriminals managing to steal more than $1.7 billion worth of crypto from the industry, according to Chainalysis. One of the main attacks in 2022 was on Ronin Bridge, where $625M worth of crypto was stolen. North Korean hacker group, Lazarus, was linked to the attack.

After stealing these funds, North Korean hackers launder the stolen funds through crypto mixers and chain hopping. The stolen funds are later cashed out through cryptocurrency exchanges that fail to implement adequate KYC.AML controls.

One of the major attacks in the crypto space in 2-23 so far is on Atomic Wallet. Hackers managed to steal around $100 million worth of cryptocurrencies from the wallet. The stolen assets include Bitcoin, Dogecoin, Ethereum, Litecoin, Stellar, Tron, and XRP.

The cybercriminals behind this hacking attack transferred the stolen Ether to multiple wallet addresses they controlled. The transfer used wrapped Ether stolen by the attackers, which was later swapped for wrapped Bitcoin before being converted into Bitcoin. The stolen assets were laundered using coin mixer tools to hide the origin of the funds.

Hackers use sophisticated tools to launder stolen crypto

North Korean hackers have been using multiple tools to launder stolen cryptocurrencies. The hackers have shifted from using cryptocurrency exchanges to launder the funds and instead use complex money laundering processes in multiple stages.

The evolution in the hacking strategy is a response to OFAC sanctions, scrutiny by law enforcement agencies, and the increased ability to trace cryptocurrency transactions. One of the popular techniques is chain-hopping, where a crypto asset is converted to another and transferred across chains. Hackers use this technique to hide their activities.

A report by TRM Labs noted there was a need to implement robust cybersecurity measures and whitelisting addresses to limit the transfer of funds to recipients. There is also a need to obtain offline storage for passphrases and keys. According to TTM Labs, protecting digital assets is an individual responsibility.

The findings in the report also point to the increased threat of cybercrime activities in the crypto space. Over the last five years, the amount of stolen cryptocurrency signals a growing need to boost security measures and have regulatory oversight in the industry. Moreover, a focus on DeFi platforms and the evolution of laundering tactics shows that cybercriminals are changing how they respond to regulations.