A recent confidential report from the United Nations, obtained by Reuters, uncovered that the Lazarus Group, a cybercriminal organization from North Korea, moved millions of stolen cryptocurrency funds back to the country last year.

In March 2023, these North Korean hackers illegally obtained $147.5 million worth of cryptocurrency from HTX, a crypto exchange owned by TRON founder Justin Sun. A year later, they transferred the funds into North Korea using the sanctioned crypto mixer Tornado Cash.

North Korea’s Cyber Warfare

The monitors informed a United Nations Security Council (UNSC) sanctions committee that they had been investigating 97 suspected cyberattacks by North Korean hackers on cryptocurrency firms between 2017 and 2024, totaling around $3.6 billion.

Additionally, the monitors shared information that North Korean IT workers abroad generate significant income for the country. They also mentioned a report from The New York Times on February 6, which alleged that Russia released $9 million of frozen North Korean assets and allowed Pyongyang to open an account at a Russian bank in South Ossetia, enabling easier access to international banking networks.

The Lazarus Group and other North Korean hackers have been involved in some of the most profitable hacks in the crypto and DeFi sectors, with Tornado Cash being their preferred method of money laundering.

In 2022, the US sanctioned Tornado Cash for assisting North Korea, and in 2023, two of its co-founders were charged with facilitating over $1 billion in money laundering, which included transactions for a cybercrime group linked to North Korea.

North Korea’s Diverse Targets in $1B Crypto Theft

An earlier report from the UNSC revealed that 50% of North Korea’s foreign exchange earnings came from cyberattacks. The nation increased its focus on targeting cryptocurrency platforms in 2023, surpassing previous years.

Although the total amount stolen was lower than in 2022, according to Chainalysis, the number of hacks hit a record high of 20, coinciding with a general downturn in the crypto market.

In 2023, the blockchain analysis firm estimated that the total stolen cryptocurrency reached just over $1 billion. North Korean hackers primarily targeted DeFi, stealing around $429 million, as well as centralized services, exchanges, and wallet providers, where they stole $150 million, $330.9 million, and $127 million, respectively.