US govt says North Korea stole over $659 million in crypto last year

Latest News on North Korea's Cryptocurrency Thefts

As of January 2025, there has been a significant escalation in cryptocurrency thefts attributed to North Korean state-sponsored hackers, posing substantial threats to global financial stability and cybersecurity.

Scope and Impact of the Thefts

North Korean-linked hackers, particularly the notorious Lazarus Group, have been responsible for some of the largest cyber thefts in recent history. Notable incidents include the $600 million hack of the Ronin network and the $235 million breach of the WazirX exchange1 3 4.
In 2024 alone, these hackers stole over $1.34 billion in digital assets across 47 incidents, accounting for more than 60% of the total cryptocurrency stolen globally that year. This marks a significant increase in both frequency and scale of these attacks1.

Economic and Strategic Implications

The funds obtained from these hacks are believed to be used to finance North Korea’s ballistic missile and weapons of mass destruction programs. This activity is a critical source of foreign currency for the regime, contributing significantly to its financial sustainability despite international sanctions1 3.
Since 2017, North Korean hackers have reportedly stolen approximately $3 billion in cryptocurrency, which is comparable to 5% of North Korea’s recorded economy or 45% of its military budget3.

Cybersecurity Implications

The sophistication of these cyber attacks has increased, with hackers leveraging various vulnerabilities such as phishing attacks, supply chain breaches, and infrastructure hacks. They particularly target cross-chain bridges and exploit unprotected private keys and seed phrases3.
The attacks pose a collective threat to the cryptocurrency industry, including exchanges, DeFi networks, individual users, venture capital firms, and alternative technologies. This necessitates enhanced risk management strategies, improved cybersecurity protocols, and increased investments in cybersecurity by cryptocurrency firms3.

International Response

The United States, Japan, and South Korea have issued a joint warning about the growing danger posed by North Korean-linked cryptocurrency hackers. They emphasized the need for global collaboration to prevent such thefts and recover stolen assets1.
South Korea recently imposed sanctions on 15 North Koreans accused of funding the country’s nuclear weapons program through illicit crypto activities. The three countries have vowed to work together across both public and private sectors to disrupt North Korean cybercrime operations and deny the regime access to stolen funds1.
International cooperation, including fintech partnerships, is seen as crucial in countering these cyber threats. Improved coordination and information sharing among fintech companies, governments, and law enforcement can lead to better threat detection and mitigation3.

Regulatory and Compliance Measures

Collaborating with financial regulatory agencies is essential to ensure fintech companies comply with existing regulations and sanctions. This includes scrutinizing entities that assist North Korean cybercrime activities, notably banks and financial institutions involved in money laundering3.
Joint cyber defense exercises and training can bolster the readiness of fintech companies against North Korean cyber incursions, highlighting the importance of regulatory compliance and sanctions in combating these threats3.

In summary, the recent surge in North Korean cryptocurrency thefts has significant implications for global financial stability, cybersecurity, and international security. The coordinated efforts of the U.S., Japan, and South Korea, along with enhanced risk management and regulatory compliance, are critical in addressing these threats.

Sources:

[IcoHolder: North Korea's Crypto Hacks Threaten Global Security]1
[Mirage News: US Condemns North Korean Crypto Thefts, Urges Unity]2
[OneSafe: The Impact of North Korean Crypto Hacks on Global Finance]3
[Economic Times: North Korean hackers responsible for $235 million WazirX breach, say US, South Korea]4