Crypto scams connected to hackers in North Korea have hit a new high in 2024. Chainalysis, a blockchain analytics firm, reported that these bad actors have stolen over $1.3 billion in crypto assets.
This sharp rise in crypto crime is part of a bigger, more troubling picture tied to the Democratic People’s Republic of Korea (DPRK). The criminal’s growing cybercrime now poses a significant threat to the global blockchain space.
Sophisticated Tactics Drive Record-Breaking Crypto Theft Year
North Korea nearly doubled its crypto thefts in just one year, earning $1.3 billion, a 02.88% increase. Chainalysis reported 47 separate incidents, with hackers making smaller profits in earlier attacks, usually under $50 million.
These operations are now larger and more sophisticated. North Korean hackers have become more skilled at exploiting vulnerabilities. They use tactics like fake identities, controlling remote access, and acting as hiring agents to evade detection and steal larger sums.
A Shift in Strategy Amid Global Tensions
Interestingly, Chainalysis noticed North Korea’s crypto attacks seemed to dip around June. Around that time, there was a high-profile meeting between Russian President Vladimir Putin and North Korean leader Kim Jong Un.
The meeting has sparked speculation that the DPRK might have shifted its cybercriminal strategies to bolster ties with Russia.
People fear that the North Korean government might be supporting Russia against the ongoing war in Ukraine. This shift in focus contributed to the temporary reduction in hacking activity.
U.S. Cracks Down on North Korean Crypto and Cyber Fraud
In December 2024, the U.S. Department of Justice (DOJ) made a significant move, pushing back against North Korean crypto hackers. The legal authorities indicted 14 North Korean individuals involved in a major IT fraud scheme.
The indictment exposed a complex operation where the individuals used fake identities to execute wire fraud and money laundering.
Reportedly, the illicit funds were channeled back to North Korea. This development highlights the growing international efforts to counter the DPRK’s reliance on cybercrime to finance its weapons program.
Experts Urge Stronger Defenses as Crypto Attacks Surge
With the rise of these sophisticated attacks, experts like Chainalysis are urging the blockchain industry to tighten its defenses. Blockchain firms are urged to strengthen their partnerships with U.S. law enforcement.
By working together, they can better safeguard against future hacks. With cyberattacks rising, the crypto industry must act quickly to prevent falling victim to these growing threats.
