A staggering $2.2 billion worth of cryptocurrency has been stolen this year, with over half of the theft attributed to North Korea hackers, according to a new study by Chainalysis. The report highlights an alarming rise in digital currency theft and the increasing sophistication of cybercriminals, particularly those affiliated with North Korea.

  • North Korea’s Role: Hackers tied to the reclusive regime stole $1.3 billion in cryptocurrencies, more than doubling their total from the previous year.
  • Methods: Many of the thefts were linked to North Korean hackers infiltrating crypto and technology firms by posing as remote IT workers.
  • Global Impact: Cryptocurrency theft in 2024 rose by 21% from 2023 but remains below the peaks of 2021 and 2022.

Major Incidents

  • DMM Bitcoin (Japan): Hackers stole $300 million worth of bitcoin.
  • WazirX (India): The exchange lost nearly $235 million in assets.
  • Key Vulnerability: The study pointed out that the majority of crypto thefts resulted from compromised private keys, emphasizing the risks central exchanges face in managing user funds.

Geopolitical Implications

The U.S. government has repeatedly accused North Korea of using cybercrime, including cryptocurrency theft, to fund its weapons programs and evade international sanctions.

  • Last week, a federal court in St. Louis indicted 14 North Koreans for an alleged conspiracy targeting U.S. firms to funnel money to Pyongyang.
  • The U.S. State Department has offered a $5 million reward for information on these activities.

The rise in stolen cryptocurrency comes amid a bull run for bitcoin, which has more than doubled in value this year. Analysts attribute the rally partly to the election of Donald Trump, who is expected to adopt more crypto-friendly policies compared to outgoing President Joe Biden.

The Chainalysis report underscores the urgent need for the crypto industry to address vulnerabilities and bolster security measures. As the threat landscape evolves, the stakes remain high for exchanges, regulators, and governments combating digital theft on a global scale.