In a detailed public service announcement issued on Tuesday, the FBI warned North Korean hackers may attempt extensive “malicious cyber activities“ against companies associated with “cryptocurrency ETFs or other cryptocurrency-related financial products.”
Exposing the connivance of the North Korean government, in their public service announcement, the FBI explained how “state-sponsored” actors use social engineering tactics to target their victims.
Discussing the modus-operandi of the hackers, the FBI, in its statement said: “The actors may also impersonate recruiting firms or technology companies backed by professional websites designed to make the fake entities appear legitimate.”
Interestingly, the FBI published their announcement the same day when two of former US President Donald Trump’s Family Members’ X accounts were hacked to promote crypto spam. As of now, it is unclear whether the hackers were operating domestically or have some connection with North Korea.
FBI Has Established North Korean Connection With Major Crypto Heists
Last year, the FBI had confirmed that Lazarus Group criminals potentially backed by the North Korean regime were behind the $41 million steal from Stake.com.
In a previously published report, the FBI blamed North Korean-based hackers for multiple other cyber attacks: “In 2023 alone, DPRK cyber actors have stolen more than $200 million. This amount includes, but is not limited to, approximately $60 million of virtual currency from Alphapo and CoinsPaid on or about July 22, 2023, and approximately $100 million of virtual currency from Atomic Wallet on or about June 2, 2023.”
North Korean Hackers Have Become More Active
A report from Chainalysis earlier this year highlighted the growing activity of North Korean hackers targeting crypto platforms. According to the Chainalysis report, between 2016 and 2023, these malicious actors targeted more than 20 platforms related to DeFi and crypto. In 2023 alone, they managed to steal over a billion dollars’ worth of crypto assets. The report points to an increase in these cyberattacks against crypto companies, showing how North Korea’s involvement in hacking continues to intensify.
Recently, one of India’s biggest crypto exchange, WazirX was compromised. Perpetrators stole crypto assets worth $237 million. The crypto exchange is now struggling to repay its 4 million users who lost their assets.
Interestingly, India’s biggest crypto heist may also have a North Korean connection. Citing a Blockchain data intelligence company Elliptic, a report published by the Times of India claims the hackers involved in the WazirX crypto heist were operating from North Korea.
While there are enough cases and evidences against these organised gangs operating from their safe havens in North Korea, the investigating authorities globally have failed to ensure deterrence. These public service announcements from the FBI explain the seriousness of the issue. However, if the perpetrators go undeterred, we cannot deny the possibility of a full-scale cyber attack impacting major crypto platforms world over.
