North Korean Hackers Using Russian Crypto Exchanges to Launder Stolen Digital Assets
A recent blog post by crypto analytics platform Chainalysis reveals that North Korean hackers are utilizing Russian crypto exchanges to launder stolen digital assets. The on-chain data indicates that hacking groups associated with North Korea are using these exchanges to move funds stolen from the decentralized app project Harmony (ONE) earlier this year.
According to Chainalysis, this development comes as independent sanctions monitors express concerns about North Korea’s evolving cyber warfare tactics. A forthcoming United Nations report warns that the country is using increasingly sophisticated cyberattacks to fund its nuclear missile programs, with state-sponsored hacking groups targeting cryptocurrency and financial exchanges worldwide.
The data from Chainalysis also shows that $21.9 million in cryptocurrency stolen from Harmony Protocol was recently transferred to a Russia-based exchange known for processing illicit transactions. Furthermore, there is evidence that DPRK entities have been using Russian services, including this exchange, for money laundering since 2021.
Decrease in Hacking Activity but Significant Amounts Stolen
Although North Korean hacking groups have been less prolific in 2023 compared to last year, Chainalysis notes that they still managed to steal a significant amount of cryptocurrency. The value of stolen cryptocurrency associated with DPRK groups currently exceeds $340.4 million this year, down from over $1.65 billion in 2022.
Hot Take: North Korean Hackers Expanding Money Laundering Tactics
North Korean hackers are leveraging Russian crypto exchanges to launder stolen digital assets, according to Chainalysis. These hackers have been using the exchanges to move funds stolen from the Harmony (ONE) project. This development is concerning, as it coincides with reports of North Korea’s increasing sophistication in cyber warfare tactics. The country’s state-sponsored hacking groups are targeting cryptocurrency and financial exchanges worldwide to fund its nuclear missile programs. While there has been a decrease in hacking activity this year, the amount of cryptocurrency stolen remains significant. This partnership between North Korean hackers and Russian crypto exchanges marks an escalation in their collaboration.
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