North Korean Hackers: A Major Threat to the Cryptocurrency Industry with Over $3 Billion in Damages Since 2017

A new report from cybersecurity experts reveals the staggering impact of North Korean hacking on the cryptocurrency industry, detailing over $3 billion in thefts since 2017 and the potential funding of missile programs.

Uncover the latest insights and the urgent call for increased security measures in the crypto world.

The Persistent Challenge of Hacking, Scams, and Theft in the Cryptocurrency Sector

While the cryptocurrency industry continues its steady growth, it remains plagued by significant issues such as hacking, scams, and theft.

The Lazarus Group, a hacker collective reportedly under the North Korean authorities, remains a substantial threat.

According to a report released by the cybersecurity firm Recorded Future on November 29, 2023, "North Korea has stolen more than an estimated $3 billion worth of cryptocurrency since 2017."

The Lazarus Group is known as a cybercrime group believed to be supported by the North Korean state, and has been implicated in several cryptocurrency theft incidents in the industry.

North Korea Behind Approximately 44% of Crypto Thefts in 2022?

Recorded Future's report suggests that Lazarus Group has significantly expanded its targets in the cryptocurrency industry since 2017.

Approximately 44% of cryptocurrencies stolen in 2022 are attributed to North Korean hackers.

Specifically, "North Korean hackers are reported to have stolen the equivalent of $1.7 billion in cryptocurrency in 2022 alone," a sum that accounts for about 5% of North Korea's economy and 45% of its military budget.

Stolen Cryptocurrency Possibly Funding Ballistic Missile Tests

Most of the stolen cryptocurrency undergoes money laundering through a process known as "mixing," making it hard to trace.

It's highly likely that these stolen funds are flowing into North Korean projects.

While the exact extent to which these stolen funds are being used for ballistic missile development is unclear, Recorded Future points out that "both the quantity of stolen cryptocurrencies and the number of ballistic missile launches have dramatically increased in recent years."

Ongoing Vigilance Against North Korean Hackers is Essential

Recorded Future warns that individuals, exchange operators, and financial institutions active in the cryptocurrency industry should be aware of the potential targeting by North Korean hackers.

The firm also notes that companies in the traditional financial sector should be wary of the activities of these hacker groups.

They explain that after converting stolen cryptocurrency into fiat currency, these groups attempt to obscure the origin of the funds by moving them between different accounts.

Most attacks by North Korean hacker groups reportedly start with "social engineering" or "phishing," and companies should train their employees to monitor such attacks and implement strong multi-factor authentication, such as passwordless authentication compliant with FIDO2.

In conclusion, Recorded Future emphasizes the need for investment in cybersecurity measures and regulations.

Without appropriate responses, North Korea will almost certainly continue targeting the cryptocurrency industry for additional revenue.

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