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North Korea suspected of stealing more than $1.7 billion in crypto from exchanges

Updated: Jul 25, 2024
Published: Dec 30, 2021
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North Korea allegedly stole more than $1.7 billion worth of cryptocurrencies from exchanges over several years,

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North Korea targets exchanges around the world

South Korean media reports that North Korea hacked 2 trillion won ($1.7 billion) worth of cryptocurrencies from exchanges. North Korea used the money to fund its nuclear program and ballistic missile development. The reports also suggest that the heavily sanctioned country is holding some assets for the long term to make the most of them, rather than immediately selling them for cash.

The United States also pointed out in October 2021 that the country had been doing this for several years. The U.S. statement said, "The apparent modus operandi is that the hackers send emails with malicious code to internal employees that then allow them to steal money from the exchanges. The country has also targeted exchanges in various parts of the world, including South Korea, Slovenia, Indonesia, and the United States.

Hacks have become a major problem

With heavy economic sanctions imposed on North Korea, the country is resorting to underhanded tactics to get around the sanctions. Cryptocurrencies have become a powerful tool in this regard, worrying governments and politicians. As more and more capital flows into the crypto market, it is not surprising that hackers are targeting it. The U.S. has also warned in the past of possible North Korean attacks on banks, which has made the situation worse.

The DeFi market is a prime target for hackers as many new protocols have emerged, some unaudited. Projects in this area have focused on audits and collaborative initiatives to prevent the loss of funds. According to a report The Block, hackers captured more than $1.4 billion from DeFi exploits in 2021, but one solution that has already shown some success is bug bounties.

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