North Korean hackers launched at least seven attacks on cryptocurrency platforms in the past year to steal nearly $400 million worth of digital assets A report by blockchain analysis company Chainalysis.
“From 2020 to 2021, the number of North Korea-related hacks increased from four to seven, and the value extracted from those hacks grew by 40%,” the report said.
The attacks mainly targeted investment firms and centralized exchanges.
The report said the hackers drained the funds from the organizations’ internet-connected “hot wallets” to DPRK-controlled addresses using sophisticated tactics such as phishing decoys, code exploits, malware and advanced social engineering .
“Once North Korea gained custody of the funds, they began a painstaking laundering process to cover them up and pay them off,” the report said.
In 2021, Ethereum and Bitcoin accounted for 58% and 20% of funds, respectively; 22% came from ERC-20 tokens or altcoins.
The report also said, citing the United Nations Security Council, North Korea used the money through hacks to support its weapons of mass destruction (WMD) and ballistic missile programs.
According to the analysis report, the Lazarus Group – a hacking group that is part of North Korea’s main intelligence agency, the Reconnaissance General Bureau – is suspected of carrying out the attacks. The Lazarus Group was previously accused of the cyber attack Sony images entertainment and I could cry.
More than 65% of North Korea’s stolen funds were laundered through mixers – software tools that aggregate and encrypt digital assets from thousands of addresses.
North Korea also owns unlaundered crypto funds believed to be worth $170 million from 49 separate hacks spanning from 2017 to 2021.
“It’s unclear why the hackers are still sitting on those funds, but it could be that they’re hoping law enforcement will lose interest in the cases so they can withdraw funds undetected.” Whatever the reason, the length of time the DPRK is willing to hold onto these funds is instructive because it indicates a careful plan, not a desperate and hasty one,” the report said.
