North Korean Hackers Targeting Cryptocurrency to Bypass Sanctions
Yesterday’s report on security records revealed that since 2017, a group known as “S” from the Democratic People’s Republic of Korea (DPRK) has been actively targeting the cryptocurrency sector. The group’s actions are driven by the need to evade international sanctions imposed against their country (source).
Highly skilled North Korean specialists with expertise in computer sciences and mathematics, along with privileged access to technology and information, are utilizing their skills to carry out powerful cyber attacks on the cryptocurrency industry.
The US Department of Finance recently imposed a series of sanctions on the cryptocurrency mixer Sinbad, which the group Lazarus, associated with the DPRK, used for laundering illegally obtained funds (source).
Statistics suggest that the group has managed to steal approximately $3 billion worth of cryptocurrencies over the past six years, with around $1.7 billion stolen in 2022 alone. The majority of these funds are believed to be financing the DPRK’s programs related to the development of weapons of mass destruction and ballistic missiles.
A report by Chainalysis on cryptocurrency crimes in 2023 highlighted the DPRK’s significant role in the rise of hacker attacks on decentralized finance (Defi) platforms, which utilize smart contracts to provide financial services without relying on traditional financial institutions like banks or exchanges.