North Korea’s Cybercrime Syndicates Shatter Records with $1.7 Billion in Cryptocurrency Theft

PYONGYANG, DEMOCRATIC PEOPLE’S REPUBLIC OF KOREA - A Report by Chainalysis Reveals Alarming Trends in Crypto Crime

North Korea’s cybercrime syndicates have achieved a new milestone in 2022, with an estimated $1.7 billion stolen from victims worldwide through cryptocurrency theft. The majority of these thefts were carried out by North Korea-linked hackers, including those affiliated with the notorious Lazarus Group.

The Lazarus Group: A Threat to Global Security

The report highlights the group’s hacking activities have been linked to North Korea’s nuclear weapons program and are believed to be funded by the government. This raises concerns about the potential use of stolen funds for malicious purposes.

Stolen Funds: Where Did They Go?

The $1.7 billion in stolen funds includes $1.1 billion worth of cryptocurrency from decentralized finance (DeFi) protocols, which were largely sent to other DeFi protocols, mixers, and exchanges. Mixers are services that allow users to obscure the origin of their cryptocurrency transactions, making it difficult for law enforcement to trace.

Diversification of Mixers

Following the sanctions imposed on Tornado Cash, a popular mixer service, North Korea-linked hackers have turned to Sinbad, a relatively new custodial Bitcoin mixer. Since December 2022, Sinbad has received over $24 million worth of Bitcoin from North Korea-linked hackers.

Sinbad: A New Player in the Game

Sinbad is believed to be operated by individuals with ties to North Korea’s cybercrime syndicates and uses advanced encryption techniques and proxy servers to conceal the identity of its users. This makes it challenging for law enforcement agencies to track transactions.

Law Enforcement Agencies Take Action

The report highlights the growing capabilities of law enforcement agencies to combat cryptocurrency-related crime, including the recent seizure of $30 million worth of stolen cryptocurrency in the Axie Infinity hack. As blockchain technology continues to evolve, investigators will likely be able to trace and recover more stolen funds.

Senior Law Enforcement Official Statement

“This is a significant blow to North Korea’s cybercrime syndicates,” said a senior law enforcement official. “We are working closely with international partners to disrupt their operations and bring those responsible to justice.”

Blockchain Expert Warns of the Need for Cooperation

“This is a wake-up call for the cryptocurrency industry,” said a blockchain expert. “We need to work together to prevent these types of attacks from happening in the first place.”

Conclusion

The report concludes that while North Korea-linked hackers remain a significant threat to the cryptocurrency ecosystem, their activities will become increasingly difficult to carry out as law enforcement agencies improve their capabilities and cooperation increases.

Full Report Available on Chainalysis Website

Read the full report on the Chainalysis website to learn more about this alarming trend in crypto crime.