Numbers Down, But Security Concerns Persist
In a surprising turn of events, the total amount of cryptocurrency stolen by North Korea-linked hackers has dropped by a staggering 80% this year. However, experts warn that this decline is not necessarily a sign of improved security or reduced criminal activity.
Chainalysis, a leading blockchain forensics firm, recently released a report stating that the decrease in crypto theft is largely due to the "dismally high benchmark" set by the record-breaking $1.65 billion stolen in 2022. Instead of celebrating, experts emphasize that the threat of cybercrime remains ever-present, with potentially huge losses just a single major hack away.
Latest Hacks
Over the past 10 days, two separate hacks have been attributed to North Korea's Lazarus Group. The first targeted Stake, resulting in a loss of $40 million on September 4th. This was followed by the CoinEx hack on September 12th, which saw $55 million being stolen. In total, these two incidents accounted for a combined loss of over $95 million.
According to Chainalysis, North Korea-linked attacks have made up approximately 30% of all crypto funds stolen in hacks this year.
Russian Exchanges: A Haven for Money Laundering
Further investigations by Chainalysis reveal that North Korean hackers have increasingly relied on Russian-based exchanges to launder their illicitly acquired funds in recent years. This connection dates back to 2021, with the largest known laundering event involving the transfer of $21.9 million from Harmony's $100 million bridge hack on June 24, 2022.
Notably, Lazarus Group has utilized United States-sanctioned cryptocurrency mixers, Tornado Cash and Blender, in addition to the Russian exchanges, during the Harmony Bridge hack and other high-profile cybercrimes.
United Nations' Efforts to Combat Cybercrime
Recognizing the impact of North Korea's cybercrime activities on its nuclear missile program, the United Nations is actively working to curb these illicit activities at an international level. By targeting the source of funding, the hope is to disrupt the flow of stolen funds and weaken the support for North Korea's weapons program.
Meanwhile, Chainalysis believes that increased audits of smart contracts can play a pivotal role in making life more challenging for these hackers, further enhancing the security of the cryptocurrency ecosystem.
