Chainalysis's new hacking data raises national security concerns
Cryptocurrency stolen by hackers linked to North Korea has dropped by a whopping 80% this year compared to 2022, but a blockchain forensics firm says that's not necessarily a sign of progress. As of September 14, hackers linked to North Korea had stolen a total of $340.4 million worth of cryptocurrency, which is less than the record fund of $1.65 billion stolen in 2022. Chainalysis said in a Sept. 14 report that the decline in numbers this year is not an indicator of improved security or less criminal activity. We must remember that 2022 has set a disappointingly high benchmark. In reality, we are just one major hack away from exceeding the $1 billion threshold in stolen funds in 2023.
It is worth noting that in the last 10 days, North Korea's Lazarus Group has done two different hacks. In which there was a loss of $40 million in Stake on September 4 and $55 million in CoinEx on September 12, meaning a total loss of more than $95 million. Chainalysis said that with the two new hacks, North Korea has accounted for nearly 30% of all crypto funds stolen in hacks this year.
North Korea is resorting to dubious exchanges and mixers
Meanwhile, Chainalysis has found that North Korean hackers have become increasingly dependent on some Russian exchanges to launder illicit funds over the past few years. The firm said North Korea has been using various Russian exchanges since 2021. One of the largest laundering incidents involved the transfer of $21.9 million from Harmony's $100 million bridge hack on June 24, 2022. United States-sanctioned cryptocurrency mixer Tornado Cash and Blender have also been used by the Lazarus Group in the Harmony Bridge hack and other high-profile hacks conducted by the group.
The United Nations is attempting to curb North Korea's cybercrime tactics internationally, as North Korea is believed to be using stolen funds to support its nuclear missile program. Meanwhile, Chainalysis hopes that increased smart contract audits could reduce hacking incidents.
