Rise in North Korean Cyber Attacks on Crypto Platforms
In recent years, North Korea has been involved in an increasing number of cyber attacks targeting cryptocurrency platforms. Groups like Kimsuky and Lazarus Group have used various malicious strategies to steal large amounts of crypto assets. In 2022, hackers associated with North Korea stole approximately $1.7 billion.
Record Number of Hacks in 2023
According to Chainalysis, in 2023, North Korea targeted more crypto platforms than ever before, although the total stolen amount was less compared to the previous year. The number of hacks reached a record high of 20, coinciding with the overall downturn in the crypto market.
Targeting DeFi Platforms and Centralized Services
In 2023, North Korean hackers focused on stealing crypto from decentralized finance (DeFi) platforms, with approximately $428.8 million stolen. They also targeted centralized services, exchanges, and wallet providers, pilfering $150 million, $330.9 million, and $127 million respectively.
However, there was a significant reduction in North Korea’s targeting of DeFi protocols in 2023, reflecting the overall decline in DeFi-related hacking incidents.
Decline in Stolen Funds from DeFi Hacks
The total value of stolen funds decreased by 54.3% to $1.7 billion in 2023 compared to the previous year. This decrease can be attributed to a decline in DeFi hacking incidents.
In 2021 and 2022, the surge in stolen crypto was primarily driven by hacks targeting DeFi protocols, resulting in over $3.1 billion stolen. However, in 2023, hackers only managed to steal $1.1 billion from such protocols, marking a significant 63.7% drop.
Types of DeFi Attack Vectors
Chainalysis, in collaboration with Web3 and Halborn, identified two categories of DeFi attack vectors: on-chain and off-chain. On-chain attacks were due to vulnerabilities in smart contract design and implementation, while off-chain attacks were often a result of compromised private keys.
The need for enhanced security practices beyond the scope of a specific blockchain was emphasized to mitigate these types of attacks.
Hot Take: North Korean Hackers Adapt to Changing Crypto Landscape
In 2023, North Korean hackers continued their cyber attacks on crypto platforms, targeting both DeFi protocols and centralized services. Despite an overall increase in the number of hacking incidents, the total stolen amount decreased compared to the previous year. This can be attributed to a decline in DeFi-related hacking incidents.
It is crucial for crypto users and platforms to prioritize security measures and stay vigilant against evolving cyber threats from North Korea and other threat actors in the crypto space.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.