The number of cryptocurrency hacks attempted by North Korean cyber criminals was relatively high in 2023 compared to 2022. However, if we look at the actual cryptocurrency that has been stolen, it significantly dropped by 40% more attempts in 2023, as reported by the blockchain analysis firm Chainalysis on January 24, 2024.
North Korean hackers Crypto hacking trends
If we examine the cryptocurrency lost in 2023, it was somewhere around $1 billion in a series of 20 hacks by North Korean hackers. However, in 2022, despite fewer attempts, these North Korean hackers stole over $1.7 billion worth of cryptocurrency. One of the notorious hacking groups, known for its activities, is the Lazarus group.
The North Korean Lazarus Group is recognized for holding a significant amount of TRON. In 2023, it emerged as TRON whales with a holding of 137 million TRX, according to a report by Todayq News on September 26, 2023. Despite TRON, this group single-handedly accumulated over $40 million worth of Bitcoin.
However, the significant drop in the stolen funds that these North Korean hacker groups experienced in 2023 highlights developments in cryptocurrency security. Specifically, hacks targeting decentralized finance (DeFi) protocols saw a significant drop, with a total of $1.1 billion stolen in 2023, down by 64% from the $3.1 billion stolen in 2022, as reported by Chainalysis. Additionally, the vice president of investigation at Chainalysis stated that,
“There have been some positive aspects that have started to slow their success in making off with hundreds of millions of dollars in one attack”
North Korean hackers’ utilization of Russian exchanges
According to a September 2023 Chainalysis report, North Korean hackers have continuously used Russian cryptocurrency exchanges to launder stolen cryptocurrency assets since 2021. Additionally, a report also highlighted that North Korean hackers transferred over $21 million worth of stolen cryptocurrency from Harmony Bridge to Russian exchanges, known for facilitating illicit financial flows.
Considering all these activities by North Korean hacking groups in the cryptocurrency landscape, the United States, South Korea, and Japan, in response to these illicit activities, held a meeting in Seoul on December 8, 2023. The general concern is that these stolen crypto assets are consistently used to support their nuclear and ballistic missile program, as well as other illicit activities.
