Last year was the worst on record for cryptocurrency heists, with hackers stealing up to $3.8 billion (nearly Rs. 31,100 crore), led by attackers linked to North Korea, who raked in more than ever, he said a US-based blockchain analytics firm reported on Wednesday.
The report from Chainalysis found hacking activity “ebbs and flows” throughout the year, with “huge spikes” in March and October. October was the biggest single month ever for cryptocurrency hacking, with $775.7 million (nearly Rs. 6,300 crore) stolen in 32 separate attacks, the report said.
The cryptocurrency The market faltered in 2022 as risk appetite waned and various crypto firms collapsed. Investors suffered huge losses and regulators called for more consumer protection.
At the time, Chainalysis and other firms confirmed to Reuters that North Korean accounts had lost millions of dollars in value.
But that didn’t deter hackers.
North Korea-linked hackers such as those at cybercriminal syndicate Lazarus Group have been by far the most prolific cryptocurrency hackers, stealing an estimated US$1.7 billion (nearly Rs. 13,900) in multiple attacks over the past year, the report said.
“In 2022, they broke their own records for theft,” it said.
North Korea has denied allegations of hacking or other cyber attacks.
According to a panel of experts monitoring United Nations sanctions, North Korea has increasingly relied on hacking to fund its missile and nuclear weapons programs, particularly as publicly declared trade dwindled under sanctions and COVID-19 lockdowns.
“It’s not hard to say that cryptocurrency hacking accounts for a sizeable chunk of the country’s economy,” Chainalysis said.
Last year, US law enforcement seized $30 million (nearly Rs. 2.5 billion) in stolen funds from North Korea-linked hackers for the first time.
“These hacks are getting harder and less fruitful with each passing year,” Chainalysis predicted.
Goals in “decentralized finance” or DeFia thriving segment in the cryptocurrency sector, accounted for more than 82 percent of cryptocurrencies stolen in 2022, the report said.
DeFi applications, many of which are running on the ether Blockchain, are financial platforms that enable crypto-denominated lending outside of traditional banks.
© Thomson Reuters 2023
