A confidential report from the United Nations, obtained by Reuters, reveals that North Korea's infamous cybercrime unit, the Lazarus Group, moved millions of dollars in stolen cryptocurrency back to the country last year.

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

North Korea's Cyber Warfare

According to the report submitted recently, UN monitors investigated 97 suspected North Korean cyberattacks on cryptocurrency firms between 2017 and 2024, amounting to approximately $3.6 billion.

The monitors also found that North Korean IT workers abroad generate significant income for their country, based on information from UN member states and private companies. They were also examining a New York Times report from February 6, which claimed that Russia had released $9 million out of $30 million in frozen North Korean assets and allowed Pyongyang to open an account at a Russian bank in South Ossetia, facilitating better access to international banking networks.

The Lazarus Group and other North Korean hackers have carried out some of the most profitable hacks in the crypto and DeFi sectors, with Tornado Cash being their preferred mixer.

In 2022, the US sanctioned Tornado Cash, accusing it of aiding North Korea. In 2023, two of its co-founders were charged with facilitating over $1 billion in money laundering, including for a cybercrime group associated with North Korea.

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

An earlier UNSC report revealed that North Korea obtained 50% of its foreign exchange earnings from cyberattacks. The nation expanded its targeting of cryptocurrency platforms in 2023, hitting more than ever before.

However, the total amount stolen was lower compared to 2022, according to Chainalysis. Despite this decrease, the number of hacks reached 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 amounted to just over $1 billion. Notably, North Korean hackers focused on DeFi, stealing approximately $429 million. They also targeted centralized services, exchanges, and wallet providers, from which they stole $150 million, $330.9 million, and $127 million, respectively.