A UK compliance expert found that North Korean hackers had stolen $721 million from Japanese cryptocurrency holdings since 2017. 30% of worldwide losses occur here. These hackers are suspected of stealing foreign funds for North Korea’s weapons programme, threatening Asian security. As reported by Nikkei, Elliptic analysed firms in several locations whose virtual cash was moved to Lazarus Group electronic wallets. This is the first time North Korean hackers have broken down cash losses by location or nation.
North Korea’s illegal acts are becoming more apparent to the world. The Group of Seven finance ministers and central bank governors warned of the “growing threat from illicit activities by state actors,” including Bitcoin thefts, in light of North Korea’s missile tests.
A UN Security Council panel claimed that North Korea stole between $600 million and $1 billion in Bitcoin in 2022, twice the previous year’s sum. Elliptic predicted $640 million for 2022. North Korea primarily hacks Bitcoin exchanges to steal. Hacks may generate enormous sums of crypto assets, making this strategy attractive.
North Korea stole $2.3 billion in cryptocurrencies from companies between 2017 and 2022, Elliptic found. Japan lost the most, $721 million, followed by Vietnam ($540 million), the US ($497 million), and Hong Kong ($281 million).
Crypto hacks rising by the day
Due to the fast growth of their cryptocurrency marketplaces and many operators’ inadequate security, hackers have apparently targeted Japan and Vietnam. Between 2018 and 2021, North Korean hackers hacked at least three Japanese cryptocurrency exchanges, causing large losses. North Korea is using cyberattacks to earn foreign cash due to international restrictions on its coal exports.
Pyongyang’s cyber actions have drawn worldwide condemnation. In 2017, the US accused North Korea of worldwide ransomware campaigns. In October 2022, Japan’s National Police Agency and others warned crypto exchange operators about North Korea’s participation. The UN Security Council panel of experts reinforced this warning, citing the country’s continuous hacking to assist its nuclear and missile programmes.
Japan has tightened security to prevent stolen cryptocurrencies from being used for military reasons. However, more must be done to handle emergent technologies like decentralised finance (DeFi) and assist local crypto exchange firms. Cryptocurrency companies must collaborate internationally to share threat intelligence and improve defences.
Hiroki Iwai, president of Tokyo-based cyber consultancy Sighnt, stressed the necessity of information exchange between public and private sectors and industry groups in each nation to strengthen defence capabilities across industries, including finance.
