In the realm of digital currency, North Korean hackers have proven themselves to be the ultimate thieves of the year. With a staggering $1.34 billion stolen through cryptocurrency hacks in 2024, these cybercriminals have reached unprecedented levels of theft, highlighting the significance of this revenue stream for Pyongyang. The data from Chainalysis, a blockchain research group, reveals that this year alone, North Korean-affiliated groups have orchestrated 47 incidents, more than doubling the amount stolen compared to the previous year. As a result, North Korea now holds the dubious title of accounting for two-thirds of cryptocurrency hacks globally.
- North Korean Operatives as Bank Robbers:
- US officials have dubbed North Korean operatives as “the world’s leading bank robbers” due to their sophisticated hacking capabilities. Over the years, they have cultivated a highly trained army of hackers targeting western institutions, establishing their dominance in the realm of cybercrime.
- Funding Illicit Activities:
- The UN panel of experts monitoring international sanctions has uncovered that North Korea channels the funds acquired through criminal cyber operations into supporting its illicit ballistic missile and nuclear programs. It is estimated by the US that up to a third of North Korea’s missile program is funded through cybercrime.
- Diversifying Funding Sources:
- Andrew Fierman, from Chainalysis’s head of national security intelligence, emphasizes that North Korea has a history of employing various techniques to evade sanctions and fund its weapons programs. From evasive shipping tactics to the use of shell companies, stealing cryptocurrency has become another avenue for them to finance the regime’s activities.
In a daring heist attributed to North Korean hackers, 4,500 bitcoins valued at $305 million were stolen from a Japanese crypto exchange, DMM Bitcoin, in May. The stolen bitcoins were traced back through a complex network of intermediaries, eventually ending up at a Cambodian crypto exchange. As a consequence of the hack, DMM Bitcoin announced its closure and the transfer of customers’ accounts to other exchanges.
Amidst the rise in the value of stolen cryptocurrency, which reached $2.2 billion this year, the number of recorded hacks has surged to an all-time high of 303. This surge coincides with Bitcoin’s exponential growth, surpassing $100,000, fueled by Donald Trump’s US presidential election victory.
However, there has been a notable decline in North Korea’s hacking activity in the latter half of the year. This slowdown is attributed to a strategic partnership signed between Kim Jong Un and Vladimir Putin in June that deepened trade and military ties between North Korea and Russia. As North Korea receives increased support from Russia, their reliance on cybercrime appears to diminish.
As the hermit kingdom charts a new course with Russian support, there is a potential shift away from cybercriminal activities. The average daily crypto loss linked to North Korean groups has decreased by half, while losses with no connection to the country have slightly increased. This shift suggests that North Korea may be reducing its dependence on cybercrime as it strengthens its partnership with Russia.
In conclusion, the landscape of cryptocurrency theft is evolving, with North Korean hackers at the forefront of this illicit activity. As they adapt to changing geopolitical dynamics, it is imperative for the international community to remain vigilant and combat cybercrime effectively. Awareness, cooperation, and robust cybersecurity measures are essential in safeguarding digital assets from malicious actors.
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