North Korea-backed threat actors made headlines in 2023 for hacking more cryptocurrency platforms than ever before. However, despite their increased activity, they managed to steal less digital currency in total compared to the previous year.
According to a report from crypto research firm Chainalysis, North Korean adversaries were able to steal slightly over $1.0 billion in 2023, a decrease from the staggering $1.7 billion they stole in 2022. The significant spike in 2022 was mainly attributed to a major heist on decentralized finance (DeFi) products, where North Korean hackers stole approximately $1.19 billion in assets, accounting for 70% of all crypto gains.
In 2023, the global DeFi market saw a decline in hacking activities, leading to lower gains for North Korean hackers targeting DeFi protocols. Chainalysis researchers pointed out two key reasons for this shift. Firstly, DeFi protocol developers have improved their operational security, making it harder for hackers to exploit vulnerabilities. Secondly, the overall value of DeFi assets dropped in 2023, impacting the potential gains from hacking these platforms.
The global data reflects a 63.7% decrease in the value lost in DeFi hacks and a 7.4% drop in the median loss per hack. While the number of individual crypto hacks increased, the number of DeFi hacks specifically declined by 17.2% in 2023. North Korean threat actors also saw a decrease in gains from DeFi hacking, with a reported $428.8 million stolen from DeFi platforms in 2023, down from $1.19 billion in 2022.
To offset these losses, North Korean hackers diversified their targets in 2023, expanding their attacks to include centralized crypto platforms and crypto wallets such as Atomic Wallet, Alphapo, and Coinspaid. This strategic shift allowed them to continue their illicit activities and adapt to the changing landscape of the cryptocurrency market.
In conclusion, while North Korean-backed threat actors continued to pose a significant risk to the cryptocurrency industry in 2023, their tactics evolved in response to market trends and increased security measures. The ongoing battle against cybercrime in the crypto space underscores the importance of vigilance and robust security practices to safeguard digital assets from malicious actors.