North Korean Hackers Looted Over $600,000,000 in Crypto in 2023: Report
North Korean state-sponsored hacking groups stole over $600 million in cryptocurrency in 2023. This accounts for almost one-third of all cyber theft proceeds, according to research published this week by TRM Labs. The figures spotlight the Democratic People’s Republic of Korea’s dominance as the world’s most prolific crypto fraud actor.
Key Details:
- North Korean hackers stole over $600 million in crypto during 2023.
- Additional year-end heists could push totals over $700 million.
- Represents nearly one-third of all cyber theft funds, despite a drop from the 2022 number.
Read more: VanEck Pledges 5% Of Bitcoin ETF Profits For Developers
North Korean hackers target private keys and seed phrases
North Korea has notoriously turned to cryptocrime to raise funds for its isolated regime as traditional finance channels are constricted under global sanctions related to nuclear weapons development ambitions.
By compromising private keys and seed phrases to drain wallets, state-sponsored groups have looted close to $3 billion in total since 2017. The stolen assets quickly transition through various crypto mixers in efforts to obscure transaction histories before conversion to non-crypto currencies.
“Hackers transfer the victims’ digital assets to wallet addresses controlled by North Korean operatives. They are then swapped mostly for USDT or Tron and converted to hard currency using high-volume OTC brokers,” said TRM Labs in the report.
Read more: Taiwan Police Bust Crypto Exchange In $32,100,000 Fraud Scheme
As highlighted in the report, Pyongyang adapts tactics as specific money laundering tools and exchanges face restrictions. This includes pivoting from Tornado Cash to alternatives like Sinbad and BitMixer when the former faced OFAC sanctions.
Despite cybersecurity improvements across the crypto sector, TRM expects 2024 will see persisting disruption as Pyongyang explores new vulnerabilities and infrastructure.
With nearly $1.5 billion drained in just the last two years, North Korea’s hacking apparatus is outpacing reform efforts. Preventing further catastrophic breaches will require coordinated public and private collaboration globally.
