UN Alleges North Korea’s Involvement in $3 Billion Crypto Heist

2024-02-22, 08:23

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## [TL; DR]
Several North Korea-affiliated hackers are responsible for stealing over $3 billion between 2017 and 2023.

North Korea uses the funds it raises from crypto heists to develop weapons of mass destruction.

The funds raised from stolen crypto assets amounts to about 30% of its foreign earnings.

## Introduction 
Probably, the greatest threat towards digital assets like cryptocurrency is their loss through illicit means such as hacking and scamming. The emergence of organized cyber-criminals makes the situation dire as some of them use advanced methods to steal digital assets from individuals and organizations.

Many crypto projects have lost much cryptocurrency due to hacking. In this analysis, we look at the crypto illicit activities of some North Korea -affiliated hackers.

Important to know: [General Security Principles in Blockchain](https://www.gate.io/learn/articles/general-security-principles-in-blockchain/358 "General Security Principles in Blockchain")

## North Korea’s Crypto Assault: 58 Cyberattacks Fund WMD development, says UN Report 
The United Nations sanctions monitors recently reported that several North Korean organized groups, operating under the Reconnaissance General Bureau - the country’s primary foreign intelligence agency - had been involved in crypto assets theft over the past few years, stealing over $3 billion through cyberattacks.

According to [Reuters](https://www.reuters.com/technology/cybersecurity/un-experts-investigate-58-cyberattacks-worth-3-bln-by-north-korea-2024-02-08/ "Reuters"), the UN identified 58 cyberattacks which North Korea affiliated hackers might have conducted between 2017 and 2023 resulting in loss of crypto assets worth around $3 billion.

The same report mentions that North Korea is increasingly targeting supply chains and defense companies. The possible motive for the Democratic People’s Republic of Korea’s (DPRK) crypto heist is to fund its weapons of mass destruction development (WMD) program.

The publication quoted the UN report as saying, “The panel is investigating 58 suspected DPRK cyberattacks on cryptocurrency-related companies between 2017 and 2023, valued at approximately $3 billion, which reportedly help fund DPRK’s WMD development.”

It is essential to note that despite the sanctions imposed on the country, North Korea continues to develop and test nuclear attack submarines, satellites and ballistic missiles. The following graph shows the total loss of crypto assets which North Korea crypto hackers stole over the years. 
![](https://gimg2.gateimg.com/image/article/1708589886image.jpg)
Crypto Funds Stolen by North Korean Affiliated Hackers since 2016 - Chainanalysis

As you note from <a href="/zh-tw/price/the-graph-grt" target="_blank" class="blog_inner_link">The Graph</a>, North Korea linked crypto hackers stole the greatest amount of crypto assets in 2022. During that year the crypto criminal groups stole over $1 billion. However, in 2023 there was a reduction in the number of North Korea linked hacks as they [stole cryptocurrencies worth around $340 million](https://www.gate.io/blog_detail/3094/daily-news-a-new-vulnerability-in-ios-16-may-cause-crypto-devices-to-be-hacked-north-korean-hackers-stolen-over-200m-in-crypto-in-2023-7-trending-tokens-are-about-to-be-unlocked "stole cryptocurrencies worth around $340 million").

A [Chainanalysis report](https://www.chainalysis.com/blog/2022-biggest-year-ever-for-crypto-hacking/ "Chainanalysis report") has indicated that the Lazarus Group was the leader in North Korea crypto hacking activity as it stole around $1.7 billion worth of cryptocurrencies in 2022.

Regarding this, [Chainalysis said](https://www.chainalysis.com/blog/2022-biggest-year-ever-for-crypto-hacking/ "Chainalysis said"), “$1.1 billion of that total was stolen in hacks of DeFi protocols, making North Korea one of the driving forces behind the DeFi hacking trend that intensified in 2022.” This indicates that if there is no solution to the North Korea backed threat many DeFi platforms may continue to lose large quantities of digital assets including cryptocurrencies.

The North Korea backed threat goes beyond the financial losses the crypto sector faces. This is because the crypto criminal groups exchange infrastructure and tools which further enhance their crypto heist capabilities. It is expected that, with time, the cybercriminal ecosystem will grow and adopt modern technologies like artificial intelligence (AI) and machine learning (ML).

Also, the revenue generated from North Korea crypto hacking activity accounts for about 30% of the country’s foreign earnings which can advance the military capabilities of the regime. North Korea also uses the stolen funds to produce conventional arms and munitions it supplies to other countries, thereby contravening the existing sanctions.

The United Nations Security Council is unlikely to take action against North Korea due to the division in the organ. This is because China and Russia advocate for the easing of sanctions to lure North Korea to denuclearization negotiations. Already, Russia and China have strengthened their relationships with North Korea.

## Lazarus Group Cyberattacks 
As previously mentioned, Lazarus Group is behind most of North Korea crypto hacking activity. For example, the United States has accused North Korea of stealing over $7.8 million worth of cryptocurrencies from Nomad, a cryptocurrency platform. Lazarus Group is known for using mixing services [like Tornado Cash](https://www.gate.io/learn/articles/what-is-tornado-cash/211 "like Tornado Cash") to launder the funds.

The [Lazarus Group is also accused of stealing crypto assets](https://www.gate.io/blog_detail/963/north-korean-lazarus-hackers-the-mastermind-behind-the-infamous-ronin-hack "Lazarus Group is also accused of stealing crypto assets") worth $55 million from <a href="/zh-tw/price/coinex-cet" target="_blank" class="blog_inner_link">CoinEx</a> exchange, $117 million from Poloniex and $100 million from Atomic Wallet, a non-custodial decentralized digital wallet.

It is the same crypto criminal organization that might have stolen approximately $37.3 million in crypto assets from CoinsPaid’s hot wallets and $60 million worth of cryptocurrencies from Alphapo, a centralized crypto payment provider.

Read also: [Tether Fails to Uphold US Sanctions against Tornado Cash](https://www.gate.io/blog_detail/1545/tether%E6%B2%A1%E6%9C%89%E6%94%AF%E6%8C%81%E7%BE%8E%E5%9B%BD%E5%AF%B9%E9%93%BE%E4%B8%8A%E6%B7%B7%E5%B8%81%E5%99%A8tornado-cash%E7%9A%84%E5%88%B6%E8%A3%81 "Tether Fails to Uphold US Sanctions against Tornado Cash")

The other North Korea linked hackings implicating Lazarus Group are Stake.com, an online crypto casino, which lost $41 million in virtual currency as well as the <a href="/zh-tw/price/axie-infinity-axs" target="_blank" class="blog_inner_link">Axie Infinity</a>’s Ronin Bridge and <a href="/zh-tw/price/harmony-one" target="_blank" class="blog_inner_link">Harmony</a>’s Horizon Bridge incidents. The list of the hackings is longer than this and may include some crypto heists which people might not have implicated the North Korea linked group for.

Read also: [The Biggest Crypto Heist in History](https://www.gate.io/id/blog_detail/2158/the-biggest-crypto-heist-in-history "The Biggest Crypto Heist in History")

## Conclusion
The United Nations compiled a report where it accuses North Korea of masterminding many crypto heists that resulted in loss of virtual currencies worth over $3 billion between 2017 and 2023. According to a source much of the raised funds are allocated towards the development of weapons of mass destruction. At the moment, the United Nations Security Council has no workable plan to avert the threat which North Korea poses to the world.

## FAQs for Crypto in North Korea
### Does North Korea use crypto?
North Korea uses cryptocurrency. It uses some of them to fund the production of arms and munitions. It has also been accused of stealing crypto assets from DeFi protocols through hacking.
### How much cryptocurrency has North Korea stolen?
Between 2017 and 2023 North Korea has stolen more than $3 billion worth of crypto assets. The country has several hacking groups that are linked to the Reconnaissance General Bureau, its primary foreign intelligence agency.
### How much has Lazarus Group stolen?
North Korea [affiliated Lazarus Group stole more than $1.7 billion worth of cryptocurrencies between 2017 and 2023](https://www.gate.io/learn/articles/report-interpretation-analysis-of-north-korean-hackers-phishing-groups-and-money-laundering-tools/1535 "affiliated Lazarus Group stole more than $1.7 billion worth of cryptocurrencies between 2017 and 2023"). Its main method of stealing the crypto assets was hacking.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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