Chainalysis Says North Korea-Linked Groups Account for 89% of Crypto Hacking Losses This Year
Summary
- Chainalysis said about 89% of cryptocurrency hacking losses this year were attributed to North Korea-linked attacks, underscoring the scale of the security threat.
- It said estimated North Korea-linked losses reached $13.24 billion (59%) out of $22.34 billion in total cryptocurrency hacking losses since 2021.
- It said on-chain analysis, asset freezes, and AI-based tracking are underway for hacking proceeds tied to North Korea-linked groups, including the Binance hack.
Forecast Trend Report by Period
About 89% of cryptocurrency losses from hacks reported this year are estimated to be tied to North Korea-linked hacking groups, according to Chainalysis.
Chainalysis, a global blockchain data platform, said on Nov. 1 that North Korea-linked attacks accounted for about 89% of reported crypto hacking losses so far this year. That was up sharply from 15% in 2021.
The average loss per North Korea-linked hack also rose about 3.7-fold, to $185.65 million this year from $50.65 million in 2021. Total crypto hacking losses from 2021 through Oct. 29 reached $22.34 billion. Of that, an estimated $13.24 billion was linked to North Korea, or about 59% of the total.
Chainalysis said it found on-chain evidence linking North Korean hacking group TraderTraitor to the roughly $6.4 billion Binance hack on Oct. 29. It also detected signs that funds stolen from Binance were mixed with proceeds from the Bitget hack in September. The Federal Bureau of Investigation has also pointed to North Korea as being behind the attack.
Chainalysis also found signs of automated money laundering in the movement of the stolen funds. The attackers executed thousands of transactions in a short period and dispersed the assets across multiple wallets. The firm said the funds could eventually spread across tens of thousands of wallets, with laundering activity expanding through cross-chain bridges and instant swap services.
Efforts to freeze the funds are also underway. As of Oct. 30, about $2.8 billion of stolen assets had been frozen through actions by law enforcement agencies and stablecoin issuers, according to Chainalysis. The firm is sharing transaction data with relevant organizations and using artificial intelligence-based analytics to track the movement of the funds.
Kwon Jun-hyuk, country manager of Chainalysis Korea, said North Korea-linked crypto hacks have become a major security threat across the industry as losses continue to grow. The on-chain links identified in the Binance case show blockchain analysis plays an important role in identifying those behind attacks and tracking stolen funds, he added.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.