North Korea’s Hackers Allegedly Steal $2 Billion from Crypto Exchanges
In a startling revelation, North Korea’s hackers have reportedly siphoned off nearly $2 billion from centralized cryptocurrency exchanges over the past year, intensifying concerns about the security of digital assets and the geopolitical implications of such thefts.
Major Hacks and Sophisticated Laundering
Blockchain security expert Tay Monahan has highlighted that a significant portion of these funds, approximately $1.8 billion, was stolen through a series of sophisticated hacks targeting major centralized crypto trading platforms, including Bybit, DMM Bitcoin, WazirX, Phemex, and BingX. Despite encountering obstacles such as asset freezes and transaction fees, the group has reportedly managed to launder over $1.5 billion for the North Korean regime.
Monahan explained, “Even if we optimistically say they lost 15% to freezes and fees and brokers, that’s still over $1.5 billion dollars to the authoritarian regime of a nation with a total GDP <$30 billion."
A recent probe by TRM Labs uncovered that these hackers utilized underground Chinese banking networks to facilitate cross-border fund movements, effectively bypassing global sanctions and minimizing detection risks. To further obscure their financial trails, the stolen assets were moved through a complex sequence of transactions involving decentralized exchanges, blockchain bridges, and crypto mixers.
The final phase of the laundering process typically involves offloading the assets through over-the-counter (OTC) brokers, which allows the regime to convert the digital assets into fiat currency with minimal oversight.
The Rise of Crypto Crimes
Blockchain investigator ZachXBT described this surge in coordinated thefts as part of a broader “crime supercycle” within the digital asset industry. He noted, “While it’s true the industry has historically been ripe for abuse, it has noticeably increased since politicians launched meme coins and numerous court cases were dropped, further enabling the behavior.”
Despite the inherent transparency of blockchain networks, ZachXBT pointed out the lack of consistent enforcement that allows hackers to thrive. He warned that laundering networks and OTC brokers have become increasingly adept at cleaning stolen funds, particularly from recent exchange hacks.
Highlighting the growth of illicit activity on the Tron blockchain, he estimated that the “Black U” market could be worth as much as $10 billion. ZachXBT also criticized the lax regulatory enforcement, emphasizing that many influencers promoting fraudulent projects rarely face consequences, which perpetuates a culture of impunity.
He suggested, “Government agencies could probably have made $50-100M issuing fines to all of the influencers/projects who never disclosed paid ads over the years (is illegal in many jurisdictions but just never prosecuted).”
This alarming trend underscores the urgent need for enhanced security measures within the crypto industry and more robust regulatory frameworks to combat the rising tide of cybercrime. As the digital asset landscape continues to evolve, the stakes for ensuring the integrity and security of crypto exchanges and protecting investor assets have never been higher.
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