"North-Linked Organization Steals Over 2 Trillion Won in Cryptocurrency via Hacking"

Cryptocurrency Analysis Firm Report
Theft Scale Nearly Tripled Year-on-Year
"North Korea Funds Nuclear and Missile Programs Through Hacking"

[Asia Economy Reporter Yoon Seul-gi] Hacker groups linked to North Korea, including Lazarus, are analyzed to have stolen virtual currencies worth $1.65 billion (about 2.025 trillion KRW) last year.

According to the '2023 Cryptocurrency Crime Report' published on the 1st (local time) by Chainalysis, a blockchain analysis company based in New York, USA, a total of $3.8 billion (about 4.66 trillion KRW) worth of virtual currencies were stolen worldwide last year.

This is an increase of $500 million from $3.3 billion in 2021. In October, which recorded the largest monthly scale, a total of 32 hacking incidents occurred, resulting in the theft of virtual currencies worth $775.7 million.

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About 44% of the stolen virtual currencies were analyzed to be the work of North Korea-linked hackers such as Lazarus. The report stated that the scale of virtual currency theft by North Korea-linked hackers last year was $1.6505 billion. This is nearly three times the $428.8 million (about 500 billion KRW) in 2021, marking the largest scale ever.

The scale of virtual currency hacking by North Korea-linked organizations is on an increasing trend. It was about $1.5 million in 2016, $29.2 million in 2017, $522.3 million in 2018, $271.1 million in 2019, $299.5 million in 2020, $428.8 million in 2021, and $1.6505 billion last year. Over the past seven years, North Korea-linked organizations have stolen a total of $3.229 billion (about 3.9 trillion KRW) in virtual currencies.

Earlier, the FBI identified North Korea-linked organizations as behind hacking incidents worth $600 million and $100 million in March and June last year, respectively. The United Nations (UN) also reports that North Korea funds its nuclear weapons and missile development through hacking.

Last year, North Korea conducted eight intercontinental ballistic missile (ICBM) test launches and a total of 41 launches, firing about 70 ballistic and cruise missiles, the largest number ever, and South Korean and U.S. intelligence agencies assess that preparations for a seventh nuclear test have also been completed.

Chainalysis pointed out, "Considering that North Korea's total exports in 2020 were only $142 million, cryptocurrency hacking accounts for a significant portion of the North Korean economy."

However, as countries strengthen measures against money laundering and recovery of criminal proceeds, cryptocurrency hacking is expected to become more difficult in the future. Chainalysis stated, "Due to these efforts (the war against digital crime), cryptocurrency hacking will become more difficult, and it will be harder to earn income year by year."