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North Korean cryptocurrency thefts decrease by 80%, but this situation may shift rapidly: Chainalysis
Cryptocurrency taken by hackers associated with North Korea has decreased significantly by 80% compared to 2022 — however, a blockchain forensics company indicates that this may not reflect an actual improvement.
As of September 14, 2023, hackers linked to North Korea have appropriated a total of $340.4 million in cryptocurrency, a decline from the unprecedented $1.65 billion in stolen assets reported in 2022.
Cryptocurrency assets taken by North Korean-affiliated groups from 2016 to 2023. Source: Chainalysis
“The reduction in this year’s figures does not necessarily signify enhanced security or a decrease in criminal activities,” Chainalysis stated in a report dated September 14. “It is important to remember that 2022 established a notably high standard.”
“In truth, we are merely one significant hack away from surpassing the billion-dollar mark of stolen assets for 2023.”
In the last 10 days, North Korea’s Lazarus Group has been implicated in two distinct hacks — Stake ($40 million) on September 4 and CoinEx ($55 million) on September 12, totaling over $95 million in losses.
With these recent hacks, attacks linked to North Korea have accounted for approximately 30% of all cryptocurrency assets stolen in hacks this year, according to Chainalysis.
Assets taken from North Korean hacking groups compared to others from 2016 to 2023. Source: Chainalysis
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North Korea resorts to questionable exchanges and mixers
In the meantime, Chainalysis has discovered that North Korean hackers have increasingly depended on certain Russian-based exchanges to launder their illicit gains over recent years.
The firm noted that North Korea has been utilizing various Russian-based exchanges since 2021. One of the most significant laundering incidents involved $21.9 million in assets transferred from Harmony’s $100 million bridge hack on June 24, 2022.
Cryptocurrency mixers Tornado Cash and Blender, which are sanctioned by the United States, have also been employed by the Lazarus Group in the Harmony Bridge hack and other notable breaches executed by the group.
We’ve noted occurrences of DPRK-linked hackers transferring assets to Russian services since 2021. However, this year’s transfer of $21.9 million stolen from Harmony to a high-risk Russian exchange marks an escalation of that trend. Below are examples of some of those transactions. pic.twitter.com/S9cDxlk9Hu
— Chainalysis (@chainalysis) September 14, 2023
Related: FBI identifies 6 Bitcoin wallets associated with North Korea, advises caution for crypto firms
The United Nations is actively working to mitigate North Korea’s cybercrime strategies on an international scale — as it is believed that the stolen assets are being utilized to finance its nuclear missile program.
At the same time, the firm anticipates that enhanced audits of smart contracts will complicate matters for these hackers.
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