North Korean Hackers Lead One-Third of Worldwide Crypto Attacks

 On January 5th, TRB Labs released a report shedding light on the involvement of North Korean actors, particularly from the Democratic People’s Republic of Korea (DPRK), in a significant portion of last year's cryptocurrency hacks. Despite a decrease to $850 million in 2022, cybercriminals from North Korea, likely associated with the notorious Lazarus Group, managed to misappropriate a staggering $600 million in digital assets. The potential for this amount to increase by $100 million looms, especially if late-stage hacks such as the $80 million Orbit Bridge breach are traced back to Lazarus or other North Korean cybercrime groups.

 

 Over the past 24 months, hackers affiliated with DPRK have siphoned off approximately $1.5 billion from cryptocurrency ventures, accumulating a total of nearly $3 billion since 2017. These attacks often employ social engineering tactics directed at employees of crypto startups and decentralized platforms. Lazarus, in particular, compromises targets by utilizing stolen private keys and seed phrases – crucial components for cryptocurrency security – to execute unauthorized blockchain transactions. Typically, the stolen assets are dispersed across multiple wallets, with some eventually passing through cryptocurrency mixers like Tornado Cash or Sinbad.

 North Korean hackers also go the extra mile to liquidate their ill-gotten gains through over-the-counter (OTC) desks, converting cryptocurrencies such as Tether's USDT into fiat currency. Tether, reportedly, has ramped up its anti-money laundering efforts and is actively collaborating with the U.S. Treasury to combat illegal financial activities.

 Certain services facilitating transaction obfuscation, such as Tornado Cash, Sinbad, and Blender.io, have faced sanctions from the Treasury's Office of Foreign Assets Control (OFAC). These sanctions form part of a broader U.S. government strategy against Lazarus and its suspected role in channeling profits into North Korea's nuclear program. The Financial Crimes Enforcement Network has identified crypto mixers as a national security concern, prompting the U.S. to engage with other global governments on this pressing issue.