Over the years crypto affiliated scams, frauds, and cyberattacks have witnessed an increase with most of these stemming out of either Russia or China, however, North Korea is not far behind in this as the hackers from this country alone managed to rack up $400 million worth of hacked assets.
North Korea Dictates Crypto Crime
In a report from the Center for a New American Security (CNAS), it was highlighted that North Korean hackers have evolved to use significantly advanced sophisticated methods to conduct their operations.
This was displayed with their Gate.io hack in which they laundered cryptocurrencies and also simultaneously exchanged them into fiat currency. In regard to the same CNAS stated:-
“Through this hack, North Korea demonstrated its software and coding capability by programming automated scripts to rapidly launder and reconsolidate stolen funds into exchanges before transferring them into Lazarus-affiliated wallets.”
One of the biggest cybercriminal organizations running such hacks is the Lazarus Group. The anonymity that comes with cryptocurrencies motivates these hackers to further their efforts and engage in illegal cyber activities.
In the Crypto Crime 2022 report from Chainalysis, it was stated that this Lazarus group also known as APT 38 was the spawn of the Democratic People’s Republic of Korea (DPRK).
The group is led by DRPK’s intelligence agency called the Reconnaissance General Bureau, and just in 2021 alone, these criminals managed to snag up to $400 million worth of digital assets from 7 attacks on multiple cryptocurrency platforms. They then used DeFi platforms to launder their money.
Commenting on the issue of DeFi CNAS wrote,
“The lack of centralized custody in DeFi platforms often results in poor or nonexistent collection of user-specific information from the customer, a practice referred to as know-your-customer (KYC) protocol, which makes it easier for cybercriminals to transfer stolen funds with greater anonymity.”
Researchers found out that a part of the stolen cryptocurrencies was being used by North Korea to fund and advance their nuclear and ballistic missile development program.
Thus knowing North Korea’s rapacity of wanting such weapons and the use of stolen crypto for funding the same, the Lazarus group poses a huge threat not only to the cyber and crypto community but on a larger scale to the world as well.
