State-sponsored hackers backed by the North Korean allegedly stolen approximately $3 billion since 2017through a series of attacks on the crypto industry.
Hackers Kimsuky, Lazarus Group, Andariel and other North Korean groups were behind 44% of all stolen crypto last year, according to a report by Recorded Future's Insikt Group.
These hackers primarily targeted cryptocurrency exchanges but have also been linked to attacks against individual users and venture capital firms.
It is not surprising that North Korean state hackers specialize in these attacks, since crypto theft is one of the most important methods of obtaining income, mainly intended for financing military and weapons development programs.
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“Since 2017, North Korea has significantly increased its focus on the cryptocurrency, stealing approximately $3 billion worth of crypto industry ,” analysts at Recorded Future reported
According to researchers, hackers initially began their attacks on financial institutions by breaching the SWIFT network. However, around 2017, North Korea turned its attention to crypto. Initially, it started in the South Korean and later expanded to companies worldwide.
“In 2022 alone, North Korean hackers were accused of stealing $1.7 billion in cryptocurrencies, equivalent to 5% of the country's economy or 45% of its military budget“.
As recently reported in a confidential United Nations report, North Korean state hackers managed to steal $630 million to $1 billion in 2022 alone, essentially doubling Pyongyang's illicit profits from cyberattackscompared to the previous year.
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Their attacks began to increase after the hacking of South Korean exchanges Bithumb, Youbit, and Yapizon in 2017. Crypto assets worth approximately $82.7 million were stolen then.
In the past two years, the notorious Lazarus hackers have been linked to crypto theft from Harmony blockchain bridge ($100 million loss), Nomad bridge ($190 million loss), Qubit Finance bridge ($80 million loss), and the largest crypto hack ever after the Ronin Network cross-chain bridge breach and the theft of $620 million.
This year alone, hackers have reportedly stolen $200 million in various attacks. Some of the most recent victims include Atomic Wallet ($35 million), AlphaPo ($60 million in two separate attacks), and CoinsPaid ($37 million).
Recorded Future researchers provide a detailed history of crypto targeting by North Korean hackers in their full report .
The North Korean crypto theft has significant implications for the global economy. First, the theft creates uncertainty and loss of confidence in the cryptocurrency market. Investors and users are concerned about the safety of their funds and the possibility of becoming victims of cyberattacks.
See also: US, Japan and South Korea unite to tackle North Korean hackers
Additionally, the theft of crypto by North Korean hackers could have a negative impact on the development and security of cryptocurrencies in general. These cyberattacks expose weaknesses in security and can cause market turmoil. The loss of public trust can negatively affect the value of cryptocurrencies.
Finally, these attacks could have geopolitical implications. As mentioned earlier, North Korea is using stolen cryptocurrencies to fund its nuclear weapons and missile programs. This could threaten regional security and provoke reactions from other countries.
source: www.bleepingcomputer.com
