Growing Crypto Threats: North Korea Under the Spotlight
The United States, Japan, and South Korea have jointly warned against growing threats from cryptocurrency hackers affiliated with North Korea. Among the listed groups was the notorious Lazarus Group-a bunch of hackers connected with some of the biggest cyber thefts in history aimed at funding ballistic missile and weapons programs of North Korea via Web3 platforms.
This is the warning that echoes concerted efforts in trying to confront such threats. The three governments pledged to disrupt the illicit activities, recovering such stolen funds with the eventual aim of blocking access by the DPRK to revenues for its illegal activities.
Staggering 2024 Crypto Losses
In 2024, North Korean hackers stole more than $1.34 billion in cryptocurrency, up 102% from $660 million in 2023, due to 47 incidents of theft, including several high-profile attacks: the $305 million DMM Bitcoin hack, the $230 million WazirX hack, and the $50 million Upbit breach, among many other things.
According to Chainalysis, North Korea-affiliated cybercrime accounted for more than 61% of all cryptocurrency stolen worldwide in 2024. This exponential surge in the volume of stolen assets speaks volumes about an increasingly large-scale and sophisticated operation.
Financial System Implications
This sets the scene for rampant increases in cryptocurrency theft, including major risks to the global financial system. The US, Japan, and South Korea called out in a statement that this was a threat requiring an urgent response through cooperation with the public and private sectors. The assets have also been linked to funding North Korea’s weapons of mass destruction and ballistic missile programs, underlining further geopolitical stakes.
Shifting Methods of North Korean Hackers
The methods used by North Korean hackers are becoming increasingly advanced. Chainalysis noted a surge in hacks yielding over $50 million in 2024, with several exceeding $100 million. This trend suggests that hackers are targeting larger and more lucrative exploits, refining their strategies to maximize returns.
These developments show that international cooperation is in high demand to take proactive measures for safeguarding the integrity of the industry and, more generally, of the whole financial ecosystem. Governments and industry leaders must work together to stay ahead of these evolving threats.
