[NEWS] North Korean hackers' cryptocurrency hacking damage in 2023 is estimated to amount to approximately 87 billion yen

Blockchain intelligence company TRM Labs revealed on the 5th that the damage caused by North Korean hackers to hack crypto assets (virtual currencies) last year alone amounted to $600 million (approximately 87 billion yen).

According to the report, about one-third of the crypto assets stolen in hacks in 2023 were caused by North Korea and hacker groups related to the country. Although this is a decrease of about 30% from $850 million (approximately 123 billion yen) in 2022, it is still at a high level.

It also appears that hacks by North Korea were 10 times the damage caused by hacks unrelated to the country. Since 2017, $3 billion (approximately 434.5 billion yen) worth of crypto assets have been leaked by hacking groups related to North Korea.

According to the report, the majority of North Korean hacks appear to be carried out by illegally accessing private keys and seed phrases. The illegally acquired crypto assets are transferred to wallets managed by North Korean operatives and exchanged for Tether (USDT) and Tron (TRX). They then exchange these crypto assets for reliable hard currency through OTC brokers.

OTC brokers avoid trading on the order books of exchanges used by general investors and act as intermediaries between buyers and sellers without affecting market prices. Although OTC itself is legal, some brokers have been accused of aiding criminal organizations in money laundering.

North Korea's evolving money laundering methods

The report points out that North Korea's money laundering methods are "constantly evolving to evade international law enforcement agencies."

US regulators have imposed sanctions to shut down crypto asset mixing services Tornado Cash and ChipMixer, which are said to have been used by North Korea, but North Korean hackers have already shifted their focus to other services.

TRM Lab warns that companies and governments should be wary of North Korea's hacking capabilities, which have stolen nearly $1.5 billion in the past two years alone.

Furthermore, despite advances in cybersecurity among cryptocurrency exchanges and strengthened international cooperation in tracking and recovering stolen cryptocurrency, 2024 could see an increase in hacking damage and chaos worldwide.

Reference:Report
Image: Shutterstock

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