Report: North Korean hackers will steal nearly $400 million in encrypted assets in 2021, a year-on-year increase of 40%
This article comes fromDecrypt, original author: Scott Chipolina
Odaily Translator | Nian Yin Si Tang
This article comes from
Odaily Translator | Nian Yin Si Tangexpress。
“Once North Korea gained custody of these funds, they began a careful money laundering process to cover up and cash them out,” the Chainalysis team said in a blog post
express
In 2020, there were just four North Korea-related hacking incidents, compared to seven in 2021. Losses from these hacks also increased by 40% between 2020 and 2021, according to Chainalysis. However, it is worth noting that from 2020 to 2021, the price of Bitcoin has increased by 303%, and the price of Ethereum has increased by 472%.
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2021 North Korea 'profitable'
According to Chainalysis, bitcoin now accounts for less than a quarter of all cryptocurrencies stolen by North Korean hackers — in fact, only 20 percent of those stolen funds in dollar terms came from bitcoin.
In contrast, Ethereum accounted for the majority of stolen funds, accounting for 58%.
This, in turn, sheds light on North Korea’s laundering of stolen crypto funds.
The mixed bitcoins are then sent to deposit addresses on exchanges where the cryptocurrencies can be converted into fiat currency, usually at exchanges on the Asian continent.
This strategy is so central to North Korea’s illicit crypto empire that over 65% of the regime’s stolen funds were laundered through mixers in 2021. In 2020 and 2019, this figure will be only 42% and 21%, respectively.
A high-profile event in 2021 was the Aug. 19 hack of crypto exchange Liquid.com, when 67 different ERC-20 tokens — along with some Bitcoin and Ethereum — were moved to North Korea-linked assets. Addresses controlled by participants.
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North Korean hacking group Lazarus Group
The Lazarus Group became known to the public after the WannaCry security incident and the cyber attack on Sony Pictures.
“From 2018 onwards, the group has stolen and laundered large amounts of virtual currency each year, often exceeding $200 million,” Chainalysis said.
Lazarus Group also targeted mainstream cryptocurrency exchange KuCoin, eventually stealing approximately $250 million in cryptocurrency.
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The funds have not been laundered. In fact, North Korea currently has more than $55 million in funds stemming from attacks since 2016.
What's next?
"It's not clear why the hackers still haven't processed the funds further, it could be that they hope law enforcement interest in these cases will wane and they can cash out without being watched," Chainlaysis added, adding that North Korea has long held the funds. The funds "suggest that this is a prudent plan rather than an all-or-nothing rush."
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What's next?
The large amount of laundered and unlaundered stolen funds held by North Korea has prompted Chainlaysis to describe North Korea as a “state that supports large-scale cryptocurrency crime.”
