"North Korean Hacking Group Steals Ethereum by Selling Fake NFTs"

Blockchain Security Firm Report
"Fake NFTs Created and Sold on Exchanges"
Means of Funding Nuclear and Missile Programs Amid North Korea Sanctions

[Asia Economy Reporter Jang Hee-jun] Claims have emerged that North Korea's hacking group created fake non-fungible tokens (NFTs) to steal cryptocurrency. As North Korea's hacking attacks continue to secure funds for nuclear and missile development while evading sanctions, intelligence authorities are concerned about the possibility of cyberattacks targeting not only cryptocurrencies but also our advanced technologies and defense industries.

North Korean Cyber Attacks

According to blockchain security firm SlowMist on the 27th, a North Korea-linked cyber hacking group created 1,055 fake NFTs and sold them on exchanges, gaining the equivalent of 300 Ethereum. As of 9 a.m. that day, Ethereum was trading at 1,571,000 KRW per 1 ETH on Bithumb. Converted to 300 ETH, this amounts to approximately 470 million KRW.

The report states that illegal activities by an APT group suspected to be backed by North Korea were first detected in May. This group carried out attacks by recording visitor information through websites and storing it on external sites, reportedly using about 500 domain addresses for hacking.

Most cryptocurrency phishing attacks involve hackers disguised as exchange employees sending malicious code or malicious links. Through this, they obtain victims' account information and passwords, leading to the theft of cryptocurrencies.

SlowMist explained, "The latest sites created by the North Korea-linked cyber hacking group are disguised as projects related to the World Cup," adding, "Files containing statistical information about some victims were found in the attack scripts used by the hackers."

Contents of the attack by a North Korea-linked hacking group revealed on Twitter by blockchain security company SlowMist on the 24th

North Korean Hacking Groups Continue Attacks Targeting Cryptocurrency

In addition, attacks by North Korean hacking groups targeting cryptocurrency continue. According to a report released in early October by the UN Security Council's Panel of Experts on North Korea Sanctions, Lazarus, linked to North Korea's Reconnaissance General Bureau, hacked a gaming company operating an NFT-based video game at the end of March. North Korea is believed to have stolen 173,600 Ethereum and USD Coin worth approximately 25.5 million USD through this attack. Estimated at a total damage of about 890 billion KRW, this incident is the largest cryptocurrency hacking case ever recorded.

North Korea continues to attempt cryptocurrency hacking to fund nuclear and missile development, while also conducting attacks targeting 'information' such as the development of weapons of mass destruction (WMD). Groups like Lazarus and KimSuky have been caught conducting spear-phishing attacks and spreading viruses targeting defense contractors and various companies and institutions worldwide.

Intelligence authorities predict that North Korea's cyberattacks against South Korea will intensify next year. According to the National Intelligence Service's analysis, since Chairman Kim Jong-un presented the "Defense Industry Development Strategic Goals" at the Party Congress in January last year, attempts to steal our nuclear power and defense technologies have significantly increased.

An official from the National Intelligence Service stated, "North Korea is considered to have the world's top hacking capabilities in virtual assets," adding, "The scale of virtual assets stolen worldwide by North Korea since 2017 is estimated at 1.5 trillion KRW, with about 800 billion KRW stolen this year alone." The official further predicted, "Next year, cyber financial crimes such as cryptocurrency theft and ransomware targeting public institutions and companies are expected to surge," and "There is a high possibility that they will carry out Ransomware-as-a-Service (RaaS) attacks or target new financial services such as DeFi (decentralized finance) virtual assets and open banking."