The past year was the most detrimental for digital currency security breaches, with North Korean organizations profiting.

In 2022, cyberattacks on cryptocurrency platforms resulted in the theft of almost $4 billion, with a large portion of the activity being attributed to hackers working on behalf of the North Korean government. According to blockchain research firm Chainalysis, the amount stolen from companies in the industry was up from $3.3 billion in 2021. Most of the attacks were focused on decentralized finance (DeFi) platforms, which accounted for more than four out of every five victims. Cross-chain bridge protocols, which allow users to transfer cryptocurrency from one blockchain to another, were especially targeted, with 64% of the $3.1 billion stolen from DeFi platforms coming from these protocols. North Korean hackers, including the Lazarus Group, were responsible for $1.7 billion worth of cryptocurrency theft in 2022, a significant portion of the country's total exports of $142 million. The U.S. Treasury has accused North Korea of being involved in the $100 million hack of Harmony Bridge and the theft of $7.8 million from a cryptocurrency platform called Nomad. North Korean hackers were also behind the $600 million stolen from Axie Infinity's Ronin Network. The U.S. Treasury Department sanctioned the cryptocurrency mixing service Tornado Cash in August and again in November, accusing the platform of helping North Korean government hackers launder more than $455 million stolen in March 2022. Chainalysis found that North Korean actors began to diversify their use of mixing services, with $24.2 million worth of Bitcoin being sent to Sinbad in December and January. The report from Chainalysis coincided with a hack on a cryptocurrency platform named BonqDAO, in which $120 million was allegedly stolen. It is expected that hacking activity will continue in 2023, but collaboration and progress in the DeFi space is hoped for in order to reduce the amount of funds stolen.

This Cyber News was published on therecord.media. Publication date: Thu, 02 Feb 2023 20:25:03 +0000


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