A recent study conducted by blockchain intelligence firm TRM Labs has revealed that hackers associated with the Democratic People’s Republic of North Korea (DPRK) managed to steal over half a billion dollars’ worth of digital assets in 2023. The findings show that the DPRK was responsible for almost a third of all funds stolen in crypto attacks last year, despite a 30% reduction from their $850 million haul in 2022.
The report highlights that hacks perpetrated by the DPRK were significantly more damaging than those not linked to North Korea, with an average impact that was ten times greater. This means that nearly $3 billion worth of crypto has been lost to Pyongyang-linked threat actors since 2017.
One interesting aspect mentioned in the study is the use of crypto mixing tools by North Korean hackers to obfuscate their illicit actions from law enforcement. They would move on to other crypto tumblers if their preferred ones became sanctioned. As US sanctions and enforcement actions targeted their previous go-to platforms, Tornado Cash and ChipMixer, North Korea started to use another mixer called Sinbad. However, Sinbad was eventually sanctioned by the Office of Foreign Assets Control (OFAC) in November 2023, prompting the country to explore alternative money laundering methods.
Looking ahead, TRM Labs predicts that North Korea will continue hacking crypto wallets in 2024. Previous research by the firm found that North Korean hackers looted around $2 billion worth of virtual currencies over the past five years.
These findings highlight the ongoing challenges faced by the cryptocurrency industry in combating cyber threats from state-sponsored hackers. It underscores the need for robust security measures and increased cooperation between industry players, law enforcement agencies, and global regulators to protect users and their digital assets from these growing risks.