As an analyst with a background in cybersecurity and cryptocurrency, I find North Korea’s involvement in cybercrime, particularly in the crypto sector, to be a concerning development. The UN report obtained by Reuters sheds light on the extent of North Korea’s activities in this area, which have resulted in significant financial losses for victims such as HTX and its founder Justin Sun.
Obtained by Reuters, a clandestine UN report unveils that the infamous North Korean hacking gang, Lazarus Group, moved large sums of pilfered cryptocurrencies back to their homeland, North Korea, during the previous year.
As a financial analyst, I can recount an intriguing event that transpired in March 2023. Hackers from North Korea clandestinely stole approximately $147.5 million in cryptocurrency from HTX, a crypto exchange overseen by TRON founder Justin Sun. Fast forward to April 2024, these same hackers successfully channeled the ill-gotten gains into their isolated homeland employing the sanctioned crypto mixer, Tornado Cash.
North Korea’s Cyber Warfare
Based on a recently submitted report, monitors revealed to the United Nations Security Council (UNSC) sanctions committee that they had investigated around 97 suspected cyberattacks linked to North Korea on cryptocurrency companies between the years 2017 and 2024. The estimated total damage caused by these attacks amounted to approximately $3.6 billion.
North Korean IT workers stationed abroad generate substantial income for their homeland according to reports from U.N. countries and private corporations. Additionally, there was investigation into a New York Times article published on February 6, suggesting that Russia had transferred $9 million out of $30 million worth of previously frozen North Korean funds and granted Pyongyang access to open a bank account in South Ossetia, thereby improving their connection to international banking systems.
As a researcher delving into the world of cybercrime, I’ve discovered that the Lazarus Group and other North Korean hacking entities have left indelible marks on the crypto and Decentralized Finance (DeFi) landscapes with their financially rewarding exploits. Notably, they’ve preferred using Tornado Cash as their trusted tumbler for laundering their ill-gotten gains.
As a researcher investigating the developments in the cryptocurrency world, I came across some significant news in 2022. The US government imposed sanctions on Tornado Cash, accusing it of facilitating financial transactions for entities linked to North Korea. Later in 2023, two of its founding members faced charges for allegedly enabling over a billion dollars’ worth of money laundering activities. Among these illicit transactions were those linked to a cybercrime group believed to be connected to North Korea.
North Korea’s Diverse Targets in $1B Crypto Theft
A previous UNSC report disclosed that North Korea generated approximately half of its foreign currency revenues through cyberattacks. In the year 2023, the country intensified its focus on cryptocurrency platforms as targets, resulting in a record number of successful attacks.
Although the sum of cryptocurrency stolen in 2023 was less than that of the previous year, as reported by Chainalysis, an unprecedented number of hacking incidents occurred, reaching a total of 20. This surge in hacks took place during a broader crypto market slump.
In 2023, as a crypto investor looking back on the year, I would note that according to blockchain analysis firms, over $1 billion worth of cryptocurrencies were stolen during the year. Surprisingly, North Korean hackers were particularly active in the Decentralized Finance (DeFi) sector, successfully pilfering around $429 million. Moreover, they didn’t shy away from targeting centralized services such as exchanges and wallet providers, where they managed to steal roughly $150 million, $330.9 million, and $127 million respectively.
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2024-05-20 01:34