US, Japan, South Korea warn of rising North Korean crypto hacking threats

The United States, Japan and South Korea have issued a joint warning against the growing threat presented by cryptocurrency hackers associated with the Democratic People’s Republic of Korea (DPRK).

Groups such as the notorious Lazarus Group are prime suspects in some of the most notorious cyber thefts in Web3, including the $600 million Ronin network hack and the $230 million hack on the WazirX exchange.

North Korean hackers now pose a significant threat to the “integrity and stability of the international financial system,” according to a joint announcement published on Jan. 14.

The statement suggested North Korea aims to fund its ballistic missile programs through cryptocurrency theft:

“Our three governments strive together to prevent thefts, including from private industry, by the DPRK and to recover stolen funds with the ultimate goal of denying the DPRK illicit revenue for its unlawful weapons of mass destruction and ballistic missile programs.”

The announcement emphasized collaboration among public and private sectors in the three nations to proactively combat these cybercrime operations.

The joint announcement comes nearly three weeks after South Korean authorities sanctioned 15 North Koreans for allegedly generating funds for North Korea’s nuclear weapons development program through cryptocurrency heist and cyber theft.

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North Korea hackers stole at least $1.3 billion in 2024

North Korean-affiliated hackers have become a significant threat to the legitimacy of the crypto space.

During the past year, North Korean hackers were responsible for the $305 million DMM Bitcoin hack, the $50 million Upbit hack, the $50 million Radiant Capital hack and the $16 million Rain Management hack, according to the joint statement.

Throughout 2024, North Korean hackers stole over $1.34 billion worth of digital assets across 47 incidents, marking a 102% increase from the $660 million stolen in 2023, according to Chainalysis data.

The $1.34 billion represents more than 61% of the total crypto value stolen during 2024 and over 20% of hacking incidents.

Related: Crypto hacks wipe out $2.3B in 2024, marking 40% YoY surge

The rise in sophisticated attacks also suggests that North Korean hackers are improving their methods. Chainalysis noted an increase in hacks yielding profits of $50 million or more, indicating a shift toward more lucrative exploits:

“Notably, attacks between $50 and $100 million, and those above $100 million occurred far more frequently in 2024 than they did in 2023, suggesting that the DPRK is getting better and faster at massive exploits.”

In contrast, the DPRK’s exploits in 2022 often resulted in profits of less than $50 million.

$3 billion stolen in hacks — Why are crypto crimes surging? Source: YouTube

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