A recent United Nations (UN) investigation is shining a spotlight on the Democratic People’s Republic of Korea (DPRK), better known as North Korea, for its involvement in large-scale cyberattacks on cryptocurrency companies. These attacks were carried out over a period of six years and are believed to have generated around $3 billion in profits for North Korea. This money is expected to be used for the development of weapons of mass destruction.
A six-year crypto offensive
Reuters reports that between 2017 and 2023, North Korea-linked hacking groups attacked 58 crypto-related companies, according to the United Nations. These attacks are notable not only for their frequency, but also for their significant financial impact. The United Nations, which is expected to release a full report on its findings later this month or in early March, was investigating how those attacks contributed to North Korea’s nuclear weapons program.
“The panel is investigating 58 suspected DPRK cyberattacks on cryptocurrency-related companies between 2017 and 2023, valued at approximately $3 billion, that allegedly helped finance the DPRK’s development of weapons of mass destruction.”
Chainalysis estimated that North Korean hackers stole about $1 billion worth of cryptocurrencies through 20 different attacks in 2023. While this is a significant amount, it shows a decrease compared to 2022, when North Korea-related cyberattack losses from 15 incidents were estimated at $1.7 billion. TRM Labs, a blockchain intelligence company, predicts that the damage could become even greater in 2024 due to more sophisticated attack methods used by these hackers.
International concern about hackers
The United Nations and other international organizations are increasingly raising concerns about the use of cryptocurrencies in illicit economies, particularly in East and Southeast Asia. At the end of last year, crypto news reported that the USA, South Korea and Japan had discussed the situation at the highest level. The North Korean hackers are therefore not only a thorn in the side of the crypto industry.
It is not yet known when the United Nations will issue the comprehensive response, but these revelations underscore the need for improved cybersecurity measures and international cooperation to counter these threats. As the crypto world continues to evolve, it becomes increasingly important to be vigilant against potential risks and dangers that can come from unexpected places, such as hackers controlled by a hostile regime.