In 2021, North Korean cryptocurrency theft will total $400 million

<p>North Korean cybercriminals escalated their illicit campaigns throughout 2021, frequently conducting cryptocurrency exchange hacks to syphon hot-wallet funds, launder the gains, and cash out via decentralised exchanges. According to new data from the blockchain security firm Chainalysis, the regime's state-backed hackers stole nearly $400 million in cryptoassets last year, affecting investment firms and centralised exchanges.</p> <p>According to the firm's new report, North Korean threat actors used phishing lures, code exploits, malware, and advanced social engineering to steal digital currencies from internet-connected "hot" wallets and route them to addresses controlled by the Democratic People's Republic of Korea. Chainalysis claims that once the tokens were in their possession, "they began a careful laundering process to cover up and cash out."</p> <p>The firm warns that much of the activity was likely carried out by APT 38, also known as the Lazarus Group, which is linked to North Korea's primary intelligence agency, the Reconnaissance General Bureau, which is sanctioned by the US and the UN. Mandiant's profile on APT 38, which has previously been linked to the Sony Pictures and WannaCry cyberattacks, notes that the group is "a large, prolific operation with extensive resources" and "characterised by long planning and extended periods of access."</p> <p>Crimes that Worked</p> <p>North Korea-linked hackers have generally been successful in their activities for a variety of reasons, according to Erin Plante, senior director of investigations at Chainalysis.</p> <p>She attributes the groups' sophisticated infiltration techniques, which typically involve phishing and social engineering; methodical laundering involving mixers and decentralised exchanges; and the ability to cash out at Asia-based exchanges lacking rigid know-your-customer standards.</p> <p>Chainalysis cites an individual hack on the exchange KuCoin and another unnamed platform that netted more than $250 million as proof of the groups' in