The amount of cryptocurrency stolen by North Korea-linked hackers has dropped by a whopping 80% compared to 2022, but a blockchain forensics firm says this is not necessarily a sign of progress.
As of September 14, 2023, hackers linked to North Korea have stolen a total of $340.4 million worth of cryptocurrency, down from the record $1.65 billion in stolen funds reported in 2022.
“This year’s decline in numbers does not necessarily indicate an improvement in security or a reduction in criminal activity,” Chainaanalysis explain in a Sept. 14 report. “We must remember that 2022 sets a depressingly high benchmark.”
“In fact, we are just one step away from breaking the $1 billion mark in stolen funds in 2023.”
In the past 10 days, North Korea’s Lazarus Group has been linked to two separate hacking incidents – Stake ($40 million) on September 4 and CoinEx ($55 million) on September 12, with a combined loss of more than 95 million Dollar.
Chainaanalysis noted that of the two most recent hacks, North Korea-related attacks accounted for around 30% of all cryptocurrency funds stolen by hackers this year.
North Korea turns to questionable exchanges and mix-ups
Meanwhile, Chainaanalysis found that North Korean hackers have increasingly relied on certain Russian exchanges to launder money over the past few years.
The company said North Korea has been using various Russian exchanges since 2021. One of the largest money laundering operations involved $21.9 million in funds that were moved from Harmony’s $100 million Bridge hack on June 24, 2022.
Lazarus Group also uses US-approved cryptocurrency mixers Tornado Cash and Blender harmonious Bridge hack and other high-profile hacks carried out by this group.
Since 2021, we have observed instances of North Korea-linked hackers sending funds to Russian services. But the transfer of $21.9 million stolen from Harmony to high-stakes Russian exchanges this year is an escalation of that activity. You can see examples of some of these transactions below. pic.twitter.com/S9cDxlk9Hu
——Chain Analysis (@chainaanalysis) September 14, 2023
related: FBI flags 6 Bitcoin wallets linked to North Korea, urges cryptocurrency companies to be vigilant
The United Nations is working at the international level to curb North Korea’s cybercrime tactics, which are understood to be using stolen funds to support its nuclear missile program.
At the same time, the company hopes that increased smart contract auditing will make life harder for these hackers.
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