The amount of cryptocurrency pilfered by hackers linked to North Korea has seen a significant 80% drop compared to the previous year, but blockchain forensics firm Chainalysis cautions against interpreting this as a sign of improved security or diminished criminal activity. As of September 14, 2023 , North Korea-linked hackers had stolen approximately $340.4 million in cryptocurrency, a marked decline from the $1.65 billion reported stolen in 2022. Chainalysis underscores that the 2022 figures set an exceptionally high benchmark.
Chainalysis stresses that the decline in cryptocurrency theft this year should not be taken as a sign of reduced cybercriminal activity or better security measures. The firm warns that the cryptocurrency theft figure is close to reaching the $1 billion mark in 2023, indicating that theft remains a significant concern. In recent days, North Korea's Lazarus Group has been tied to two separate hacking incidents, the Stake hack on September 4, amounting to $40 million, and the CoinEx hack on September 12, totaling $55 million in losses. Together, these two Incidents constituted over 30% of the total cryptocurrency funds stolen by hackers this year.
Chainalysis emphasizes that Lazarus continues to be an active cryptocurrency thief, posing a national security threat due to its association with North Korea. To bolster defenses against such attacks, cryptocurrency companies are advised to train their staff to recognize and counter the social engineering tactics commonly employed by these hacking groups. These tactics exploit human trust and carelessness to infiltrate corporate networks.
Chainalysis also reveals that North Korean hackers have increasingly used specific Russian cryptocurrency exchanges for money laundering in recent years. This reliance on Russian exchanges began in 2021. One notable instance involved $21.9 million diverted from the Harmony Bridge hack in June 2022, which originally amounted to $100 million.
Moreover, Lazarus Group utilized US-approved cryptocurrency mixers like Tornado Cash and Blender in high-profile hacks, including the Harmony Bridge hack. The United Nations is working at the international level to combat North Korea's cybercrime tactics, which are believed to fund its nuclear missile program. Chainalysis hopes that an increase in smart contract auditing will move greater challenges for these hackers forward.
