North Korea’s state-sponsored hackers stole a staggering $1.34 billion worth of crypto in 2024, over double the $660 million they stole in 20 incidents in 2023.
This puts North Korea’s share of global crypto theft at 61%, with total losses hitting $2.2 billion.
North Korean Hackers Shatter Record
North Korean hackers set an infamous new record in 2024, stealing $1.34 billion worth of crypto. This makes them responsible for over 60% of the $2.2 billion in crypto stolen this year. North Korean hackers are notorious for their skills in malware deployment, social engineering, and crypto asset theft, stealing funds for state projects, including nuclear and missile programs, to help the hermit kingdom bypass global sanctions.
According to a report by Chainalysis, the frequency of attacks by North Korean hackers continues to grow despite the total number of incidents declining year-on-year. According to industry experts, North Korean hackers are getting better and faster at engineering and executing massive exploits, with attacks between $50-$100 million and above $100 million occurring with increasing frequency. North Korean hackers have also infiltrated crypto and Web3 companies and compromised the integrity of their systems.
Modus Operandi
The hackers use false identities, and third-party hiring intermediaries, and exploit remote work opportunities to access sensitive networks. Once they have access to these networks, they steal proprietary information, even accessing and stealing from company accounts. North Korean hackers are targeting the very foundations of the crypto ecosystem. In one of the most outrageous attacks in recent times, the hackers stole 4502 Bitcoin from the Japanese crypto exchange DMM Bitcoin.
The stolen assets are funneled through cross-chain bridges and cryptocurrency mixers, making them almost impossible to trace.
How 2024 Played Out
North Korea's hacker army operated at full throttle in the first half of 2024. However, their operations substantially declined after a high-profile summit between Kim Jong Un and Russian President Vladimir Putin in Pyongyang. According to Chainalysis, there was a significant drop in activity, with the amount stolen dropping over 50% in the second half of 2024.
However, analysts have not drawn a direct link between the summit and the decline in the number of hacks by North Korean actors.
A Constant Threat
While the threat from hackers is considerably lower than the levels witnessed in 2021 and 2022. The current year has registered a 23% increase compared to 2023, highlighting the constant nature of the threat from hackers. Eric Jardine, the head of cybercrimes research at Chainalysis, stated,
“We began the year on pace to be among the worst on record for stolen funds. This year’s resurgence exposes critical gaps in security and highlights the need for adaptive measures.”
He added that private key compromises remain a concern despite a drop in activity following Kim and Putin’s meeting. According to Jardine, these concerns will only increase as larger financial institutions enter the crypto space.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
