N. Korea stole $1.3 billion through cryptocurrency hacks in 2024

Data analysts reveal that $2.2 billion in cryptocurrencies has been stolen worldwide in 2024, with over half of the thefts attributed to North Korean hackers. These hackers, reportedly affiliated with North Korea's Reconnaissance General Bureau, stole a whopping $1.3 billion — more than doubling their takings from the previous year. The rise highlights the ongoing challenges faced by the cryptocurrency industry amid increasingly sophisticated cyber threats.

According to the data from a report published by research firm Chainanalysis, many attacks involved compromised private keys, essential for accessing crypto assets, and were carried out using advanced techniques like exploiting zero-day vulnerabilities. An article by The Record has published the findings of said report, recalling, that Microsoft identified a specific campaign by a North Korean group known as “Citrine Sleet” back in August 2024. They used a recently patched vulnerability (CVE-2024-7971) in the Chromium browser, Google's open-source web browser project that provides codes to the major web browsers: Google Chrome, Googlee Edge, Yandex and Opera. Citrine Sleet's methods included creating fake job application networks to infiltrate financial and crypto firms. Even though this vulnerability was subsequently patched by Microsoft, its exploitation underscores the persistent risks present in cybersecurity.

Another North Korean group, “Diamond Sleet,” reportedly collaborated with Citrine Sleet, utilizing similar tools and techniques. Both groups are known for targeting financial institutions and cryptocurrency exchanges, leveraging fake websites and phishing schemes to gain access to sensitive systems.

Some of the year’s most significant breaches included the theft of $300 million in bitcoin from the Japanese exchange DMM Bitcoin and a $235 million loss suffered by WazirX, an India-based platform. These incidents emphasize the global scope of cryptocurrency-related cybercrime and its severe impact on the industry.

The U.S. government has linked North Korea’s cyber activities to efforts to evade international sanctions and fund its weapons programs. A recent U.S. federal court indictment in St. Louis charged 14 North Koreans with conspiring to extort funds from U.S. companies to support Pyongyang’s regime. In response, the U.S. State Department has offered up to $5 million for information about these schemes, signaling the country’s commitment to combating cybercrime and its geopolitical ramifications.

Despite a 21% increase in cryptocurrency thefts compared to last year, the 2024 total remains below the peaks seen in 2021 and 2022. However, the report warns of an "increasingly complex and evolving threat landscape" that demands proactive measures from the industry. The thefts reflect broader vulnerabilities within crypto platforms, particularly concerning the protection of private keys and the need for stronger cybersecurity protocols.

The surge in bitcoin's value, which has more than doubled this year, adds another dimension to the issue, increasing the stakes for hackers and investors alike. Market optimism stems partly from expectations that incoming U.S. President Donald Trump will adopt a more crypto-friendly stance than his predecessor, Joe Biden.

As the crypto industry continues to expand, these incidents underscore the urgent need for robust defenses against cyber threats. Efforts to tackle the problem include improved patch management, enhanced threat detection, and collaborations between governments and private sectors to counteract state-sponsored cybercrime. Addressing these challenges is critical for maintaining trust in the digital financial ecosystem.

By Nazrin Sadigova