North Korean hackers steal nearly $1 billion in crypto from DeFi protocols
North Korean hackers have stolen nearly $1 billion worth of crypto from DeFi protocols, according to a report by Interesting Engineering.
DeFi protocols are decentralized financial (DeFi) protocols that consist of specialized autonomous computer programs designed to solve problems within the traditional financial sector. They would enable bitcoin trading between protocols, and facilitate the payment of products and services in cryptocurrency.
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An illustration photo taken in London on May 8, 2022 shows a gold-plated souvenir cryptocurrency Tether (USDT) coin placed next to a screen displaying US dollar bills. – Tether (USDT) is an Ethereum token known as a stablecoin that is pegged to the value of the US dollar, and is currently the largest stablecoin with a market cap of $83 billion.
North Korea’s Crypto Heist
As demonstrated in 2022, these protocols are susceptible to attack, especially in cross-chain bridges. The data for 2022 has been released by TradingPlatform.com, revealing that while North Korea is responsible for around 1 billion worth of cryptocurrency in 2022 alone, some thefts have also been carried out by highly competent hacking outfits such as the Lazarus Group.
There have been many attacks on DeFi platforms, according to analyst Edith Reads of TradingPlatform.com. The attacks are expertly planned and carried out. To combat this, various participants in the crypto realm have put mechanisms in place.
“More than $30 million worth of stolen crypto has been recovered from North Korean hackers, which gives hope. It’s a win for the crypto enthusiast. It will boost confidence among crypto investors and even attract those who have reservations about crypto security,” Reads said in a statement.
Despite the general decline in the value of digital assets, one of the more worrying aspects is that cryptocurrency crime seems to be growing.
Legitimate transactions fell by about 35%, while illegitimate transactions fell by 15%, according to TradingPlatforms.com.
In March 2022, hackers stole nearly $600 million from the Ronin bridge of Axie Infinity, and three months ago, Horizon bridge of harmony lost more than $100 million.
It must be acknowledged that although there has been a significant decrease in criminal activity in the cryptocurrency space, hackers continue to pose a significant concern. The $1.6 billion in crypto that North Korea took through cybercrime was 66% less than the $4.3 billion stolen in 2021.
The 43% drop in revenue on darknet marketplaces this year was also a result of the Hydra marketplace crash in April, as Interesting Engineering noted.
Also read: North Korean hackers are attacking Gmail accounts, according to a cybersecurity firm
Crypto winter
Crypto winter, a period when values and activity in the crypto markets decrease, typically during the winter months, may be to blame for the varied declines in criminal activity within cryptocurrency.
According to two South Korean government sources who spoke to Reuters in June, North Korea’s alleged stolen funds have been compromised by the sudden drop in cryptocurrency values, which began in May due to a major economic downturn.
It came at a time when North Korea is preparing to resume nuclear tests while conducting a large number of missile launches that have cost more than $620 million this year, according to Seoul’s Korea Institute for Defense Analyses.
North Korea is believed to spend about $640 million annually on its nuclear weapons, according to a report by the Geneva-based International Campaign to Abolish Nuclear Weapons. The central bank of South Korea also predicted that the country’s GDP would be around $27.4 billion in 2020.
Related article: North Korean state-sponsored hackers have been attacking healthcare workers since 2021 – US authorities warn
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Written by Joaquin Victor Tacla
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