North Korean Hackers Lead Crypto Attacks! Loot 10X More In 2023
North Korean crypto hackings in 2023 were 10 times greater than strikes by other entities.
According to a recent research, the developing cryptocurrency sector has been falling victim to the malevolent intents of North Korean-linked hackers in 2023.
TRM Labs, a blockchain identification fraud firm, conducted the study. The group disclosed thefts of $200 million by unscrupulous gamers based in the East Asian country.
Although the number of thefts in 2023 was dramatically reduced from the record of 2022, which saw unlawful withdrawals totaling $800 million, the threat had passed. According to disturbing research, North Korean hackers in 2023 were 10 times greater than strikes by other entities.
Source: TRM
Recognizing the Motivations Behind the Crypto Hacks
Since the violent Korean War in the early 1950s, North Korea has been seen as an international outcast. The country has faced harsh economic sanctions from the West as a result of its control over weapons of nuclear power and its backing for terrorist groups.
These stringent limitations have effectively closed the country’s young and jobless citizens’ access to the global economy. As a consequence, many of them find sanctuary in the anonymous realm of cryptocurrency.
According to Ningshuang Li, a China-based crypto educator and co-founder of the crypto content portal CoinDada,
“Cryptocurrencies give way to these conventional financial obstacles because they work on decentralized platforms that are not dependent on state-backed organizations.”
Furthermore, this turns out to be a low-risk, high-reward circumstance for them. Li went on to say,
“With exact tools, cybercriminals can carry out operations remotely, without in-person contact or capture.”
A Story about Risky Crypto Robberies
Decentralized finance (DeFi) has developed as one of the largest and most popular Web3 sectors throughout the years.
This expanding ecosystem has stayed on the radar of North Korean adversaries despite hosting massive amounts of liquidity, approximately $63 billion according to DeFiLlama.
These dishonest gamers have stolen millions by exploiting flaws in cross-chain bridges, which are seen as a major hole in DeFi’s armor. According to sources, cross-bridge hacking was responsible for the total heist amount in 2022.
The paper emphasized how the North Korean cyber ecosystem has risen to the challenge of increased restrictions, greater law enforcement, and enhanced tracing capabilities.
Furthermore, the most recent thefts entail the use of more advanced laundering methods than previous scams using the explicit utilization of cryptocurrency exchanges. One of them was the latest Atomic Wallet breach.
North Korean hackers stole $100 million in cryptocurrency from the non-custodial Atomic Wallet earlier this year. The attack might have been carried out by the infamous North Korean state-backed Lazarus Group.
Aside from the enormity of the crime, the reality that a decentralized wallet service was targeted astonished the whole crypto world. After all, as compared to exchange custody, these services advocate the goal of self-custody and greater security. Given the purpose of the exploit, the assault was most likely hacking or a supply chain hack.
According to Reuters, Lazarus gang hackers recently infiltrated an American IT business JumpCloud and utilized its ability to attack digital currency firms.
Decentralized Finance’s Weak Points
One of the primary concerns that prompted the United States Senate to draft legislation to regulate DeFi was the rising threat of North Korean-linked crypto attacks. The following are passages from the bill:
“Criminals, drug traffickers, and hostile state actors like North Korea have all shown a preference for (DeFi) as their preferred way of moving and laundering ill-gotten profits.”
Nobody has overlooked the DeFi landscape’s weaknesses. DeFiLlama estimates that $6.89 billion in crypto assets had been stolen away as of the time of writing. The last month of July 2023 was the worst of 2023, with thefts totaling $238 million.
Source: De.Fi
According to Lior Lamesh, co-founder and CEO of institutional self-custody platform GK8, the return on investment motivates unscrupulous actors to perpetrate these crimes.
“Hackers are going to invest millions to obtain billions.” When it involves irreversible protocols like blockchain, there is no going back, therefore stealing crypto becomes a tempting target for hackers.”
Closing Thoughts
The conclusions of the research highlight the rising threat of cybercrime in the cryptocurrency field, notably in the DeFi sector.
Emphasis on DeFi protocols and the growth of laundering techniques demonstrate cybercriminals’ resilience in reaction to regulatory restrictions and technical improvements.
