In 2023, North Korea-backed threat actors conducted a series of cyber attacks on cryptocurrency platforms [4], resulting in the highest number of breaches recorded during that time period. These state-sponsored cybercriminals managed to steal over $1 billion in digital currency, despite a decrease from the previous year [2].
Description
According to blockchain analytics firm Chainalysis [2], North Korean hackers executed a record number of hacks, stealing $428.8 million from DeFi platforms and $150 million from centralized exchanges [1]. These hackers utilize sophisticated methods [1], swiftly transferring stolen funds across blockchains and utilizing services like the Sinbad mixer to obscure the money trail [1]. One notable incident was the Atomic Wallet exploit [4], which attributed a $129 million setback to the TraderTraitor group.
The decrease in stolen cryptocurrencies can be attributed to a global decline in DeFi hacking [3], as developers of DeFi protocols have enhanced their security measures. Specifically, the value lost in DeFi hacks decreased by 63.7% in 2023 [3], and the number of DeFi hacks decreased by 17.2% [3].
These attacks have been on the rise in recent years [2], with groups like Kimsuky and Lazarus Group employing various tactics to acquire significant amounts of crypto assets [2]. Chainalysis emphasizes the importance of faster coordination between victims and law enforcement to seize funds and gather intelligence before money laundering obscures the trail [1].
Conclusion
The cyber attacks carried out by North Korea-backed threat actors on cryptocurrency platforms in 2023 had significant impacts, resulting in the highest number of breaches recorded during that time period. Despite a decrease from the previous year [2], these state-sponsored cybercriminals managed to steal over $1 billion in digital currency. However, the decline in stolen cryptocurrencies can be attributed to improved security measures implemented by DeFi protocol developers.
Moving forward, it is crucial for victims and law enforcement to coordinate more efficiently to seize funds and gather intelligence before money laundering complicates the investigation. This will help mitigate the impact of such attacks and ensure the security of cryptocurrency platforms in the future.
References
[1] https://milkroad.com/news/north-korean-hackers-increased-attacks-in-2023-report/
[2] https://www.techtimes.com/articles/300950/20240124/north-korean-crypto-hackers-highest-recorded-levels-activity-2016-2023.htm
[3] https://www.infosecurity-magazine.com/news/north-korea-hacks-crypto-more/
[4] https://cryptofortress.app/north-koreas-crypto-hacking-hit-all-time-high-in-2023
