The DPRK stole about $1 billion worth of crypto in 2022

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Neither the author, Tim Fries, nor this website, The Tokenist, provides financial advice. Please review our website policy before making any financial decisions.

According to a report from Thursday, April 6, Northern Quran hackers stole up to $1 billion worth of cryptocurrencies and other digital assets in 2022. The UN estimates that the number has more than doubled compared to 2021 data and warns member countries to implement Financial Action Task Force guidelines against money laundering.

North Korea allegedly stole up to $1 billion worth of crypto last year

According to a recent UN report, North Korean hackers have stepped up their game and managed to steal more than twice as much cryptocurrency as in 2021. The DPRK is estimated to have taken between 630 million and 1 billion dollars throughout the year using sophisticated cyber techniques both to gain access to digital networks involved in cyber finance and to steal information of potential value.

The report also notes that the most sanctioned country in the world has likely supplied weapons of war to Russia to help in its war in Ukraine and the leaders of the hermit kingdoms have previously expressed their willingness to send soldiers to the area. of war. The UN also warned that countries should follow the guidelines of the Financial Action Task Force against Money Laundering to help stop the DPRK’s cybercrime activities.

Earlier Thursday, the US Treasury released a report titled 2023 DeFi Illicit Finance Risk Assessment. The document takes particular note of the money laundering and ransomware attacks present in the decentralized finance ecosystem. This also, in many ways, mirrored the UN report and highlighted the fact that North Korea is one of the most prolific parties when it comes to using DeFi to launder stolen assets.

The Long History of Hackers and DPRK Digital Assets

North Korea’s rather impressive cybercrime results for 2022 come as no surprise given that the country has been a thorn in the side of decentralized finance for years. The Hermit Kingdom has been at the origin of a multitude of attacks of all kinds both with the aim of directly stealing assets and acquiring sensitive information using sometimes creative and unconventional methods such as opening fake Linkedin profiles to phishing.

Perhaps the biggest controversy over DPRK activities came last summer when the US government sanctioned cryptocurrency mixer Tornado Cash for alleged ties to North Korean group Lazarus. This move was controversial as many, including the Coin Center, argue that Tornado Cash, being software and not a centralized entity, cannot be sanctioned within the existing legal framework.

Many digital asset companies, known and obscure, have found themselves compromised due to North Korea and other criminal groups. Last year, Kraken was forced to settle with the US government the allegation that it handled transactions used to evade sanctions against countries like the DPRK. More recently, a CFTC complaint accused Binance of enabling money laundering on its exchange.

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Do you think North Korea will double its cybercrime revenue in 2023 compared to 2022? Let us know in the comments below.

About the Author

Tim Fries is the co-founder of The Tokenist. He has a B.Sc. in Mechanical Engineering from the University of Michigan and an MBA from the University of Chicago Booth School of Business. Tim was a senior partner on the investment team in the US Private Equity division of RW Baird and is also a co-founder of Protective Technologies Capital, an investment firm specializing in detection, protection and control solutions.

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