- Cryptocurrency hacks linked to North Korea reached a record high in 2023, but stolen assets fell by 41% compared to 2022.
- Hacks on DeFi protocols, once a popular target for cybercriminals, are dwindling.
- North Korean hacks pose a major threat to global finance and critical infrastructure.
Cryptocurrency platform hacks carried out by groups linked to North Korea rose to a record high in 2023, but the amount of crypto assets stolen fell significantly compared to 2023, falling by about 41%.
Of the 20 hacks by North Korean cybercriminals, the total amount of cryptocurrency assets seized was just over $1 billion, representing a $700 million decrease from 2022, according to data from Chainalysis released on Wednesday.
Meanwhile, a separate report released by blockchain intelligence firm TRM Labs earlier in January said the amount stolen was even lower, at $600 million, representing nearly a third of all funds stolen in cryptocurrency attacks in 2023. .
“North Korea-related hacks have been on the rise over the past few years, with cyber espionage groups like Kimsuky and Lazarus Group using various malicious methods to obtain large amounts of cryptocurrency assets,” Chainalysis said in a note.
Reflecting the decline in successful hacking attempts in North Korea, there has been a notable decline in successful hacks of decentralized finance protocols, which were once popular targets for cybercriminals.
In 2023, hackers were able to obtain $1.1 billion from DeFi protocols, representing a 63.7% year-over-year decline in the total value stolen from these platforms, according to Chainalogy.
The report indicated that North Korea-linked hackers took about $428.8 million from DeFi platforms in 2023. They also targeted centralized services ($150.0 million stolen), along with exchanges ($330.9 million stolen) and wallet providers ($127.0 million stolen). .
North Korea uses cybercrime to rob financial institutions, engaging in disruptive and malicious activities that pose a significant threat to the international financial system, including critical infrastructure of the United States, according to the Cybersecurity and Infrastructure Security Agency.
The authoritarian regime, disguised as recruiters, IT professionals, and government officials, illegally obtained $3 billion in cryptocurrencies by deceiving victims.
One of its notable successes in 2021 occurred with the Axie Infinity hack, where North Korean cryptocurrency thieves were able to get away with $600 million from players of the digital pet game on the platform.
