North Korean hackers are increasing their cyberattacks to steal millions of dollars and are relying on Russian partners to launder the funds, according to cryptocurrency analysts.
The observation of these escalating hacks and North Korea’s use of Russian infrastructure to move the stolen funds coincides with the growing cooperation between the two countries. North Korean leader Kim Jong Un recently visited Russian President Vladimir Putin and is expected to return to Pyongyang soon.
In recent months, cryptocurrency analysts have detected the escalating operations of North Korean hackers. According to Elliptic’s blockchain analysts, they identified North Korea-sponsored hackers stealing nearly $240 million worth of cryptocurrency over a 104-day period ending Friday.
Elliptic’s analysts, who study digital currency ledgers, tracked the stolen funds moving through addresses used by the Lazarus Group, a North Korean-sponsored hacking group sanctioned by the U.S. government in 2019.
In August, the FBI warned cryptocurrency companies that it had tracked “hundreds of millions of dollars in cryptocurrency” stolen by the Lazarus Group and believed that the hackers may soon attempt to cash out bitcoin worth more than $40 million.
Private-sector analysts tracking stolen cryptocurrency also say that North Korean hackers are increasingly turning to Russia for assistance. Cyber firm Chainalysis recently discovered that $21.9 million of stolen funds was transferred to a Russia-based exchange known for facilitating illicit transactions.
“This latest action marks a significant escalation in the partnership between the cyber underworlds of these two nations,” Chainalysis said on its blog. “Not only does this revelation signify a potent alliance between North Korean and Russian cybercriminal actors, but it also presents challenges for global authorities.”
Although the $21.9 million transfer is significant, Chainalysis estimates that North Korean hacking groups have stolen over $340 million worth of cryptocurrency so far this year and over $1.65 billion last year.
Discovering the digital fingerprints of past cyber thefts has proven to be easier than catching the actual criminals red-handed.
The Biden administration is well aware of North Korean hacking operations and is working to combat them. Top White House cyber official Anne Neuberger has stated that her team estimates that half of North Korea’s missile program is funded through cryptocurrency heists and cyberattacks.
North Korea’s cyber operations are not limited to theft of money. They are also designed to penetrate sensitive networks and steal sensitive information, according to high-level current and former U.S. intelligence officials.
Rather than destroying the computer networks they breach, the North Korean hackers prioritize cyber espionage, collecting important information to develop nuclear and ballistic missile technology and fund the regime.
Source: This article is based in part on wire service reports.
