North Korean Hackers Target More Crypto Platforms in 2023, Steal Over $1 Billion

According to CryptoPotato, North Korean hackers targeted more crypto platforms in 2023 than ever before, despite stealing a lower total amount than in 2022. Last year, hackers associated with North Korea reached a peak in crypto theft, accumulating around $1.7 billion. In 2023, the number of hacks reached a record high of 20, coinciding with the general downturn in the crypto market. Chainalysis estimated that the total stolen crypto amounted to just over $1 billion in 2023. Notably, North Korean hackers targeted decentralized finance (DeFi) platforms, stealing approximately $428.8 million. They also focused on centralized services, exchanges, and wallet providers, wherein they pilfered $150 million, $330.9 million, and $127 million, respectively. There was a significant reduction in North Korea’s targeting of DeFi protocols in 2023, reflecting the overall decline in DeFi-related hacking incidents. The total stolen funds witnessed a significant decrease of about 54.3% to $1.7 billion in 2023, despite a rise in the number of individual hacking incidents from 219 in 2022 to 231 in 2023. The notable decline in stolen funds can be attributed mainly to a decrease in DeFi hacking incidents. In the last few years, the surge in stolen crypto was largely fueled by hacks targeting DeFi protocols, amounting to more than $3.1 billion in 2021 and 2022. However, in 2023, hackers managed to pilfer only $1.1 billion from such protocols, marking a substantial 63.7% drop in the total value stolen from DeFi platforms year-over-year. Mar Gimenez-Aguilar, Halborn’s Lead Security Architect and Researcher, highlighted that a majority of DeFi hacks resulted from vulnerabilities in smart contract design and implementation. Many of the affected contracts had either not undergone any audit or had been inadequately audited. Another noteworthy trend was the rise in attacks due to compromised private keys, Gimenez-Aguilar emphasized the need for enhanced security practices beyond the scope of a specific blockchain.