North Korean crypto hacks down 80%, but that could change overnight: Chainalysis

Cryptocurrency stolen by North Korea-linked hackers is down a tremendous 80% from 2022– but a blockchain forensics company states it isnt always an indication of progress.As of Sept. 14, North Korea-linked hackers had actually stolen an overall of $340.4 million worth of cryptocurrency, down from a record $1.65 billion reported funds stolen in 2022. Cryptocurrency funds taken by North Korean-backed groups between 2016-2023. Source: Chainalysis” The fact that this years numbers are down is not necessarily an indication of better security or reduced criminal activity,” Chainalysis stated in a Sept. 14 report. “We should keep in mind that 2022 set a dismally high criteria.”” In reality, we are only one big hack away from crossing the billion-dollar threshold of taken funds for 2023″Over the previous 10 days, North Koreas Lazarus Group has actually been linked to 2 separate hacks– Stake ($40 million) on Sept. 4 and CoinEx ($55 million) on Sept. 12, integrating for a loss of over $95 million.With the current 2 hacks, North Korea-linked attacks have actually made up for about 30% of all crypto funds taken in hacks this year, kept in mind Chainalysis. “Lazarus continues to be prolific crypto burglars, which is made more troublesome by the nationwide security risk that DPRK postures,” Erin Plante, Chainalysis vice president of examinations informed Cointelegraph. Funds stolen from North Korean hacking groups vs others between 2016 and 2023. Source: ChainalysisTo enhance defenses versus attacks, cryptocurrency companies require to train workers to counter social engineering methods frequently released by these hacker groups, she added:”With North Korean-linked hackers in specific, sophisticated social engineering methods that benefit from the trusting and negligence of humanity to access to business networks has actually long been a favored attack vector. Teams ought to be trained on these dangers and indication.”North Korea turns to suspicious exchanges, mixersMeanwhile, Chainalysis has discovered that North Korean hackers have actually become significantly dependent on certain Russian-based exchanges to launder illicit funds over the last couple of years. The company said North Korea has actually been utilizing numerous Russian-based exchanges because 2021. One of the largest laundering occasions included $21.9 million in funds transferred from Harmonys $100 million bridge hack on June 24, 2022. United States-sanctioned cryptocurrency mixers Tornado Cash and Blender have also been utilized by Lazarus Group in the Harmony Bridge hack and other high-profile hacks devoted by the group.Weve observed circumstances of DPRK-linked hackers sending funds to Russian services considering that 2021. This years transfer of $21.9 M stolen from Harmony to a high-risk Russian exchange is an escalation of that activity. You can see examples of some of those transactions listed below. pic.twitter.com/S9cDxlk9Hu— Chainalysis (@chainalysis) September 14, 2023.

Cryptocurrency stolen by North Korea-linked hackers is down a massive 80% from 2022– however a blockchain forensics company says it isnt necessarily an indication of progress.As of Sept. 14, North Korea-linked hackers had actually stolen an overall of $340.4 million worth of cryptocurrency, down from a record $1.65 billion reported funds taken in 2022. Cryptocurrency funds taken by North Korean-backed groups in between 2016-2023.”Over the previous 10 days, North Koreas Lazarus Group has actually been linked to two different hacks– Stake ($40 million) on Sept. 4 and CoinEx ($55 million) on Sept. 12, combining for a loss of over $95 million.With the newest 2 hacks, North Korea-linked attacks have actually made up for about 30% of all crypto funds stolen in hacks this year, kept in mind Chainalysis.

Related: FBI flags 6 Bitcoin wallets linked to North Korea, prompts watchfulness in crypto companies The United Nations is making an effort to reduce North Koreas cybercrime techniques at the global level– as it is understood North Korea is utilizing the stolen funds to support its nuclear rocket program.Meanwhile, the company hopes increased smart contract audits will make life tougher for these hackers.Magazine: Deposit risk: What do crypto exchanges truly do with your money?Update: Sept. 14 at 3:50 am UTC: This article has been updated to include comments from Chainalysis Vice President of Investigations Erin Plante.

Other Questions People Ask

What does the decrease in North Korean crypto hacks down 80% indicate?

The reported 80% decrease in North Korean crypto hacks is significant, dropping from $1.65 billion in 2022 to $340.4 million in 2023. However, Chainalysis warns that this reduction does not necessarily reflect improved security measures or a decline in criminal activity. Instead, it may simply be a result of the exceptionally high figures from the previous year, which set a troubling benchmark. The potential for a single large hack to reverse this trend remains a serious concern.

How have North Korean hackers adapted their methods following the decline in crypto hacks?

Despite the decrease in the overall value of stolen cryptocurrency, North Korean hackers, particularly the Lazarus Group, continue to execute significant attacks. Recent hacks, such as those on Stake and CoinEx, demonstrate that these groups are still capable of causing substantial financial damage. Additionally, they have increasingly relied on Russian-based exchanges to launder stolen funds, indicating a shift in their operational tactics rather than a reduction in their capabilities.

What role do social engineering tactics play in North Korean crypto hacks?

Social engineering tactics are a critical component of North Korean hacking strategies, allowing them to exploit human vulnerabilities within organizations. Chainalysis emphasizes the need for cryptocurrency companies to train their employees to recognize and counter these sophisticated methods. By understanding the psychological manipulation techniques used by hackers, companies can bolster their defenses and reduce the likelihood of successful breaches.

What impact do North Korean crypto hacks have on the global cryptocurrency landscape?

North Korean crypto hacks pose a significant threat to the global cryptocurrency landscape, accounting for about 30% of all funds stolen this year alone. The stolen funds are often used to support illicit activities, including North Korea's nuclear weapons program, raising international security concerns. As such, efforts by organizations like the United Nations aim to curb these cybercrime tactics and mitigate their impact on the broader financial ecosystem.

What measures can cryptocurrency companies take to protect against North Korean hacks?

To protect against North Korean hacks, cryptocurrency companies should implement comprehensive training programs focused on social engineering awareness and cybersecurity best practices. Regular audits of smart contracts and enhanced security protocols can also help safeguard against potential breaches. Additionally, staying informed about the latest hacking trends and tactics employed by groups like Lazarus is crucial for maintaining robust defenses against these persistent threats.