North Korean Hackers Increased Attacks in 2023, But There’s A Catch: Report
The total value of cryptocurrencies stolen by hackers dropped drastically in 2023. According to a report by blockchain analysis firm Chainalysis, the number fell over 54% year-over-year from $3.7 billion to $1.7 billion. However, the number of individual hacking incidents ticked up from 219 in 2022 to 231 last year.
The decline was largely driven by a plunge in decentralized finance (DeFi) hacking, which has emerged as a prime target for cybercriminals in recent years. After stealing over $3 billion from DeFi protocols in 2022, hackers made off with $1.1 billion in 2023, a 63.7% year-over-year decrease.
Key Takeaways:
- Crypto hacking dropped by 54.3% by value, but the hack count grew.
- 63% drop in DeFi hacks by value.
- Record 20 hacks linked to North Korea.
Despite the drop, Chainalysis warns that hacking tactics and infrastructure continue to advance in sophistication across both centralized and DeFi services.
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Chainalysis partnered with blockchain security firm Halborn to analyze trends across on-chain and off-chain attack vectors. The data reveals spikes in theft from compromised private keys and price manipulation hacks, underscoring the diversity of threats.
While the drop in raw losses is an encouraging sign, it remains unclear whether enhanced security or simply declining activity levels in the crypto bear market were primarily responsible.
North Korean Hackers Expand Efforts
After stealing over $1.7 billion from crypto hacks in 2022, North Korean state-sponsored groups continued targeting exchanges and protocols at record levels last year. Chainalysis estimates $1 billion was stolen across 20 separate North Korea-linked hacks in 2023. The number represents the highest number of hacks executed by North Korean hackers, even though the hacked amount witnessed a drop.
Their efforts remain sophisticated, with stolen funds quickly moving across blockchains and being mixed using services like the sanctioned Sinbad mixer. The Chainalysis report shows $428.8 million stolen from DeFi platforms and $150 million from centralized exchanges in 2023.
Also read: Over 70% Of Crypto Communications Contain Potential Violations: FINRA
Chainalysis concludes that faster coordination between victims and law enforcement is crucial to seizing funds and gathering relevant intelligence before laundering obfuscates the money trail.
