North Korean Hackers Responsible for $600 Million in Crypto Theft in 2023
A recent report by blockchain intelligence firm TRM Labs revealed that North Korean hackers were responsible for approximately 33% of all crypto stolen through hacks in 2023, amounting to $600 million. If additional hacks from the last days of 2023 are confirmed, the total loss could reach around $700 million. TRM Labs also stated that Pyongyang-linked actors have stolen nearly $3 billion worth of crypto since 2017. The report emphasized that hacks by the DPRK were ten times more devastating on average compared to those not associated with North Korea.
Hackers Compromise Private Keys and Seed Phrases in Most Attacks
TRM Labs’ research revealed that North Korea conducts the majority of its hacks by compromising private keys and seed phrases. The stolen digital assets are then transferred to wallet addresses controlled by North Korean groups. The hackers typically convert the assets into Tron or USDT and then convert them into fiat currency using OTC brokers. TRM Labs also noted that despite sanctions and enforcement actions, North Korea continues to explore new laundering tools after its previous obfuscation platforms were targeted.
Continued Cybersecurity Challenges Amid North Korean Hacking
TRM Labs stated that North Korea stole over $1.5 billion in the past two years and emphasized the need for continuous vigilance and innovation from businesses and governments to combat their hacking prowess. Despite advancements in cybersecurity and increased collaboration in tracking and recovering stolen funds, TRM Labs predicts further disruption from North Korea’s cyber-thievery in 2024. In 2022, North Korea accounted for a third of crypto cyber losses, particularly through the Lazarus Group.
Losses from Crypto Hacks Declined by 51% in 2023
CertiK, a blockchain security firm, reported a 51% decrease in crypto losses due to hacks in 2023 compared to 2022. According to their annual report, $1.8 billion in crypto assets were lost across 751 security breaches in 2023, significantly lower than the $3.7 billion lost in 2022. The most costly attack vector identified in the report was private key compromises.
Hot Take: Persistent North Korean Hacking Threat Highlights the Need for Enhanced Cybersecurity
The revelation that North Korean hackers were responsible for a significant portion of crypto theft in 2023 underscores the ongoing cybersecurity challenges faced by the industry. With over $1.5 billion stolen in the past two years and a potential for further disruption in 2024, it is clear that continuous vigilance and innovation are essential in combating the sophisticated tactics employed by North Korean hacking groups. The decline in losses from crypto hacks in 2023 is a positive development, but it should not overshadow the need for strengthened security measures to protect against future threats.
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