North Korean Hackers Use Russian Cryptocurrency Exchanges to Launder Stolen Funds
A recent study by Chainalysis has revealed evidence of North Korean hackers using cryptocurrency exchanges based in Russia to launder stolen funds. Upย toย now, these hackers have identified $340 Million in digitalย currency from North Korean hacks. Nonetheless, itโs criticalย to consider the geopolitical context surrounding these events.
The Geopolitical Context
Chainalysis is an American company that frequently works with the FBI and IRS, making their actions potentially biased due to their close contact with Unitedย States Government authorities. Inย addition, Russia and North Korea are allies and have a common alliance with China. As the Unitedย States considers China and Russia as enemies, itโs critical to note that Chainalysis may not be impartial regardlessย of their objective data analysis.
Nevertheless, North Korea has a group of state hackers dedicated to stealing cryptocurrency funds worldwide. They are allegedly using sophisticated cyber attacks to fund nuclear missile programs, according to a United Nations report.
Chainalysis Analysis: Russian Cryptocurrency Exchanges Exploited by North Korean Hackers
Chainalysisโ report suggests a collaboration between North Korean and Russian forces supporting North Koreaโs extensive state cryptocurrency hacking campaign. The study outlines that DPRK-linked hacker groups are increasingly using Russian-based cryptocurrency exchanges for laundering stolen cryptocurrencies.
In one case, Chainalysis identified $21.9 Million in stolen digitalย currencies from Harmony Protocol that were transferred to a Russian exchange. Nonetheless, the exchange did not block these funds as expected. This is not an isolated incident, as Chainalysis found traces of other instances dating back to 2021 where North Korean hackers used Russian exchanges.
The report suggests a potent alliance between North Korean and Russian cybercriminal actors, reducing the chances of asset recovery due to Russiaโs non-compliance with law enforcement agencies.
Increase in North Korean Hacks
In 2023 alone, hacking activities associated with DPRK yielded $340.4 Million, while the total amount stolen aย yearย ago hadย moreย than $1.65 billion. This surge in 2022 accounted for almost half of all funds stolen since 2016. Chainalysis reports that 29.7% of digitalย currencies stolen through hacks this year can be attributed to North Korean state hackers, indicating an increase from the previous year.
The hypothesis is that North Korea uses these attacks to finance its nuclear missile program, with Russia either cooperating or turning a blind eye to takeย advantageย of the stolen funds. Althoughย while other states attempt to identify and block hackers, North Korea has even hired them inย particularย for stealing digitalย currency. Russia falls between the collaborationist states that support this illicit behavior by failing to cooperate with international law enforcement agencies.
Hot Take: Collaboration Between North Korea and Russia Fuels Cryptocurrency Hacks
The recent findings by Chainalysis reveal a troubling trend of North Korean hackers exploiting Russian cryptocurrency exchanges to launder stolen funds. This collaboration between two geopolitical allies raises concerns about the role of Russia in supporting illicit cyber activities. With $340 Million identified from North Korean hacks, itโs clear that these cyber attacks pose a wholeย lotย of threat to the security and stability of the cryptocurrency industry.
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