North Korean hackers stole US$400 million in cryptocurrency in 2021
- Once North Korea gained custody of the funds, they began a careful laundering process to cover up and cash out; UN says stolen funds support nuclear and ballistic missile programmes
- Many of last year’s cyber attacks were carried out by the Lazarus Group, sanctioned by the United States, and controlled by North Korea’s primary intelligence bureau
North Korea launched at least seven attacks on cryptocurrency platforms that extracted nearly US$400 million worth of digital assets last year, one of its most successful years on record, blockchain analysis firm Chainalysis said in a new report.
“From 2020 to 2021, the number of North Korean-linked hacks jumped from four to seven, and the value extracted from these hacks grew by 40 per cent,” said the report, which was released on Thursday.
“Once North Korea gained custody of the funds, they began a careful laundering process to cover up and cash out,” the report added.
A United Nations panel of experts that monitors sanctions on North Korea has accused Pyongyang of using stolen funds to support its nuclear and ballistic missile programmes to circumvent sanctions. North Korea does not respond to media inquiries, but has previously released statements denying allegations of hacking.
Last year the United States charged three North Korean computer programmers working for the country’s intelligence service with a massive, years-long hacking spree aimed at stealing more than US$1.3 billion in money and cryptocurrency, affecting companies from banks to Hollywood movie studios.
Chainalysis did not identify all the targets of the hacks, but said they were primarily investment firms and centralised exchanges, including Liquid.com, which announced in August that an unauthorised user had gained access to some of the cryptocurrency wallets it managed.