North Korea's Cyber Heist: How Hackers Pilfered $1.3 Billion in Crypto This Year

A recent study by Chainalysis reveals that North Korean hackers have been responsible for stealing a staggering $1.3 billion in cryptocurrencies in 2024, marking a significant increase from previous years. This figure accounts for more than half of the total $2.2 billion in cryptocurrency theft reported this year. The report indicates a growing sophistication in the methods employed by these hackers, with some incidents linked to individuals posing as remote IT professionals to infiltrate crypto and tech firms.

The increase in crypto theft in 2024 reflects a 21% rise compared to 2023, although it remains below the levels seen in 2021 and 2022. Notably, the majority of the stolen assets are attributed to compromised private keys, which control access to users’ funds on various platforms. The study emphasizes the dire consequences that can arise from such compromises, especially given the substantial financial management responsibilities of centralized exchanges.

Major thefts this year include an estimated $300 million stolen from the Japanese exchange DMM Bitcoin and nearly $235 million from WazirX, an Indian cryptocurrency exchange. The findings underscore the urgent need for the cryptocurrency industry to adapt to complex and evolving threats.

In light of these developments, the US government is taking steps to combat North Korea’s cyber activities, which are believed to be attempts to bypass international sanctions and fund the regime’s military endeavors. Recently, a federal court in St. Louis indicted 14 North Korean individuals linked to a long-term conspiracy alleged to be extorting funds from US companies. Furthermore, the US State Department has offered a reward of up to $5 million for information regarding these schemes, highlighting the seriousness of the issue.