The value of cryptocurrency stolen in 2024 surged 21% to a staggering $2.2 billion, with more than half of this amount attributed to North Korea-affiliated hacking groups, according to a recent report by Chainalysis. This alarming trend underscores the growing threat of crypto theft and the need for the industry to adapt to new tactics employed by criminals.

The report reveals that North Korean hackers have become increasingly involved in crypto attacks, with 61% of the total amount stolen in 2024 attributed to these groups. In 2024, hackers linked to North Korea stole $1.34 billion in 47 cases, up from $660.5 million in 20 incidents in 2023 and nearly $400 million in 2022. The frequency and scale of these attacks have increased, with more instances of theft exceeding $100 million compared to 2023.

The Democratic People's Republic of Korea (DPRK) has been accused of using crypto theft to fund state-sponsored activities, such as its missile program, and evade global sanctions. The United Nations Security Council estimates that North Korean hackers have stolen $3 billion in cryptocurrency assets between 2017 and 2023.

North Korean hackers have also been infiltrating crypto and Web3 companies by using fake names, hiring through third parties, and taking advantage of remote job openings. Over 12 blockchain companies have unknowingly hired undercover IT workers from North Korea, posing significant cybersecurity and legal risks. These hackers have also impersonated venture capitalists and recruiters to pilfer billions in cryptocurrency.

In a related development, the U.S. Department of Justice charged 14 individuals from North Korea for working remotely as IT employees at American companies, stealing confidential data and blackmailing their employers. The 14 individuals are listed as "Wanted by the FBI."

The Chainalysis report highlights that most crypto hack activities occurred from January to July 2024, with a significant slowdown in the upward trend after July. This decline is attributed to North Korea's alliance with Russia, which emerged after a meeting between Vladimir Putin and Kim Jong Un in June. The report suggests that North Korea may have shifted its cybercrime tactics and redirected its military resources to support Russia in the ongoing conflict with Ukraine.

The crypto industry has been plagued by hacking incidents, with over a billion dollars worth of crypto being hacked in four separate years within the past decade. Decentralized finance (DeFi) platforms that prioritize growth over security have been the primary targets of cryptocurrency hacks in the last three years. However, centralized services were the main target of attacks between Q2 and Q3 2024.

Notable cases of centralized services hacked by North Korea in 2024 include DMM Bitcoin, a Japanese crypto exchange that lost $305 million (48 billion yen) of bitcoin, and WazierX, an Indian crypto exchange that halted withdrawals in July after a security breach by North Korea-linked hackers.

The rise in cryptocurrency theft in 2024 underscores the need for the industry to address a shifting and more complicated threat landscape. Collaboration between the public and private sectors is crucial for addressing the security issue. Sharing data, utilizing tracking tools, and offering targeted training can assist stakeholders in rapidly identifying and halting malicious actors while enhancing the security of cryptocurrency assets.

In conclusion, the alarming rise of cryptocurrency theft, particularly by North Korea-affiliated hackers, emphasizes the need for stronger security measures and increased cooperation between the public and private sectors to combat this growing threat.