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Cryptocurrency Stolen by North Korea-Linked Hackers Decreases by 80% in 2023

The amount of cryptocurrency stolen by hackers linked to North Korea has decreased by a significant 80% from 2022, but according to blockchain forensics firm Chainalysis, this decline should not be interpreted as a sign of progress in combating cybercrime.

As of September 14, 2023, the total value of cryptocurrency stolen by North Korea-linked hackers stands at $340.4 million, a notable drop from the record $1.65 billion stolen in 2022.

However, Chainalysis cautions against viewing these figures as a positive development in terms of cybersecurity. The firm stated in a September 14 report, “The fact that this year’s numbers are down is not necessarily an indicator of improved security or reduced criminal activity. We must remember that 2022 set a dismally high benchmark.” Furthermore, the company warns that a single major hack could easily push the stolen funds for 2023 beyond the billion-dollar mark.

“In reality, we are only one large hack away from crossing the billion-dollar threshold of stolen funds for 2023.”

In the past 10 days, North Korea’s Lazarus Group has been implicated in two separate hacks. The first occurred on September 4, with Stake losing $40 million, followed by CoinEx’s $55 million loss on September 12, amounting to a combined loss of over $95 million.

Chainalysis highlights that North Korea-linked attacks account for approximately 30% of all cryptocurrency funds stolen in hacks this year.

North Korea’s Reliance on Dubious Exchanges and Mixers

On another note, Chainalysis has discovered that North Korean hackers increasingly rely on specific Russian-based exchanges to launder illicit funds in recent years.

The firm reveals that North Korea has been utilizing various Russian-based exchanges since 2021. One significant money laundering incident involved the transfer of $21.9 million in stolen funds from Harmony’s $100 million bridge hack on June 24, 2022.

In addition, the United States-sanctioned cryptocurrency mixers Tornado Cash and Blender have been utilized by Lazarus Group in the Harmony Bridge hack and other high-profile attacks conducted by the group.

We’ve observed instances of DPRK-linked hackers sending funds to Russian services since 2021. But this year’s transfer of $21.9M stolen from Harmony to a high-risk Russian exchange is an escalation of that activity. You can see examples of some of those transactions below. pic.twitter.com/S9cDxlk9Hu

— Chainalysis (@chainalysis) September 14, 2023

Chainalysis is actively involved in efforts to combat North Korea’s cybercrime campaigns at the international level. It is understood that the funds stolen by North Korea are used to support its nuclear missile program.

The firm also hopes that increased audits of smart contracts will make it more difficult for hackers to exploit vulnerabilities.

Related: FBI flags 6 Bitcoin wallets linked to North Korea, urges vigilance in crypto firms

Magazine: Deposit risk: What do crypto exchanges really do with your money?