North Korean Cryptocurrency Hackers Hit $600 Million in 2023
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A Jan. 5 report from TRB Labs claimed that one-third of all cryptocurrency hacks deployed last year were orchestrated by the Democratic People’s Republic of Korea (DPRK).
North Korean cryptocurrency hackers, possibly led by the notorious Lazarus Group, stole $600 million in digital assets last year, despite a 30% drop from $850 million in 2022. If backtime hacks like the $80 million rail bridge breach were blamed on Lazarus and North Korean cybercrime organizations, that number could rise by $100 million.
according to TRB laboratoryHackers linked to North Korea have stolen approximately $1.5 billion from cryptocurrencies in 24 months and nearly $3 billion since 2017. These attacks are often carried out through social engineering campaigns targeting crypto startups and decentralized protocol staff.
Once a target is compromised, Lazarus uses hijacked private keys and mnemonic phrases (key aspects of cryptocurrency storage) to initiate unauthorized blockchain transactions. In most cases, stolen assets are distributed among multiple wallets, with a portion ending up in cryptocurrency mixers such as Tornado Cash or Sinbad.
North Korean hackers also cashed in their gains through over-the-counter trading desks, converting select tokens such as Tether’s stablecoin USDT into fiat currencies. The company has reportedly increased its vigilance against money laundering and is working with the U.S. Treasury Department to combat illicit financing.
Protocols such as Tornado Cash, Sinbad, and Blender.io that allow users to obfuscate transactions have also been sanctioned by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC).
The OFAC sanctions support a broader “whole-of-government” approach to Lazarus and its operations, which authorities believe funnel profits to North Korea’s nuclear program. The Financial Crimes Enforcement Network has labeled cryptocurrency mixers a national security threat, and the United States has reached out to other world governments.
U.S., South Korean and Japanese authorities have announced a trilateral initiative to address cryptocurrency money laundering by Lazarus and other North Korean funders.
