North Korean Hackers: Stolen Almost $1 Million in Crypto!

North Korean Hackers: Stolen Almost $1 Million in Crypto!

Four North Korean men have been charged with stealing nearly $1 million in cryptocurrencies. The US Department of Justice reported that the suspects posed as freelance IT specialists to work in blockchain companies in the US and Serbia. These perpetrators carried out their cyber attacks between 2020 and 2021 and were able to gain access to internal systems and sensitive data of the attacked companies. The stolen cryptocurrencies were said to have been used to fund North Korean weapons programs, increasing international concerns about the funding of such programs.

The suspects used fake or stolen Malaysian IDs to apply for remote IT jobs. In particular, they were able to gain unauthorized access to critical information in a blockchain company in Atlanta and a token project in Serbia. This shows the vulnerability of the crypto industry to digital infiltration, especially when working from abroad and collaborating internationally.

Details about the thefts

The investigation revealed that one of the suspects, Jong Pong Ju, stole $175,000 in cryptocurrency in February 2022. His accomplice, Kim Kwang Jin, secured another $740,000 in March 2022 by exploiting vulnerabilities in smart contracts. To cover their tracks, the loot was laundered through mixers and sent to wallets registered to fake identities. This practice is part of the North Korean regime's strategy to use cybercrime to circumvent international sanctions in order to obtain funding for its programs.

Part of the current case is the DPRK RevGen program, which aims to block cybercrime revenue streams. As part of the investigation, raids were carried out in 16 US states, seizing 200 computers from "laptop farms" and freezing dozens of bank accounts.

The extent of cybercrime

A total of $2.2 billion in cryptocurrencies have been stolen this year, with North Korean hackers responsible for more than half of that amount. The theft of $1.3 billion in digital currencies by North Korean hackers has more than doubled compared to last year. What is striking is that this increase comes in a year in which the price of Bitcoin more than doubled, which may have increased the motivation for these attacks. The industry is faced with the challenge of dealing with an increasingly complex threat environment.

The US government has recently stated that North Korean actors are not only penetrating the crypto sector, but also using other forms of cybercrime to circumvent international sanctions and raise money for their weapons programs. These tips are consistent with the indictment of 14 North Koreans for their alleged involvement in a long-term conspiracy to extort US companies and finance weapons systems in Pyongyang. A reward of up to $5 million was also offered by the U.S. State Department for information about the scheme.

Taken together, the case highlights the serious threats posed by North Korean cyber activities and the need for companies to strengthen their security measures against such threats. Newsbit reports that the North Korean hackers' indictment is part of a larger fight against cybercrime, while BBC highlights the dramatic increase in stolen cryptocurrencies in recent years.