Massive Thefts Linked to IT Worker Infiltration
North Korean hackers have stolen $1.3bn worth of cryptocurrencies in 2024, according to Chainalysis. This amount represents more than half of the total $2.2bn stolen globally this year.
Chainalysis reports that the value of crypto thefts by North Korea more than doubled compared to last year. Some thefts are linked to North Korean IT workers posing as remote employees within crypto and tech companies.
The rise in stolen crypto coincides with a sharp increase in bitcoin’s value, which has more than doubled this year. Analysts suggest this surge may be influenced by expectations that the incoming US president, Donald Trump, will adopt a crypto-friendly stance, unlike his predecessor, Joe Biden.
Evolving Cyber Threats Target Private Keys
The overall value of crypto stolen in 2024 rose by 21% from 2023. However, it remains lower than theft levels seen in 2021 and 2022. Chainalysis highlights the growing threat posed by compromised private keys, which control access to user assets on crypto platforms.
The report emphasizes the vulnerability of centralized exchanges, which manage large sums of user funds. A breach of private keys in these exchanges can lead to devastating losses. Major incidents this year included the theft of $300m in bitcoin from Japan’s DMM Bitcoin and $235m from India’s WazirX.
The US government accuses North Korea of using cryptocurrency theft to fund its weapons programs and evade international sanctions. In response, a federal court in St. Louis recently indicted 14 North Koreans for alleged involvement in a scheme to extort funds from US companies and channel the money to Pyongyang’s weapons development.
To counter these activities, the US State Department announced a reward of up to $5m for information on North Korea’s crypto theft schemes. This initiative aims to disrupt Pyongyang’s illicit funding efforts and safeguard the global cryptocurrency sector.