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crypto hacks stole record $3.8 billion in 2022, led by North Korea groups
A U.S.-based blockchain analytics company claimed in a study on Wednesday that last year was the worst on record for cryptocurrency heists, with hackers taking as much as $3.8 billion, driven by attackers connected to North Korea who made more money than ever before.
Hacking activity "ebbed and flowed" throughout the year, with "massive increases" in March and October, according to a Chainalysis analysis. According to the research, October was the largest single month ever for cryptocurrency hacking, with $775.7 million being taken in 32 distinct operations.
In 2022, the cryptocurrency industry struggled as risk taking decreased and many crypto businesses went under. Regulators increased requests for more consumer protection as a result of the significant losses suffered by investors.
At the time, Reuters received confirmation from Chainalysis and other companies that accounts tied to North Korea had lost millions of dollars in value.
Hackers were not deterred, however.
The research said that hackers with ties to North Korea, such those in the cybercrime organization Lazarus Group, had been by far the most prolific bitcoin thieves, taking an estimated $1.7 billion in numerous assaults last year.
They "shattered their own records for stealing in 2022," it said.
Allegations of hacking or other cyberattacks have been refuted by North Korea.
An expert panel monitoring UN sanctions claims that North Korea has become more and more dependent on hacking to finance its missile and nuclear weapons programs, especially since publicly acknowledged commerce has decreased as a result of sanctions and COVID-19 lockdowns.
According to Chainalysis, "it isn't a leap to argue that cryptocurrency hacking constitutes a significant piece of the country's economy."
Last year, for the first time, American law enforcement confiscated $30 million in money that hackers with ties to North Korea had stolen.
With each passing year, Chainalysis anticipated that these hacks will get more difficult and ineffective.
More than 82% of the bitcoin stolen in 2022 was attributed to targets in "decentralized finance," or DeFi, a booming area of the cryptocurrency industry, according to the research.
DeFi apps are financial platforms that allow lending in cryptocurrencies outside of conventional banks, with many of them running on the Ethereum blockchain.
According to Chainalysis, the total value of cryptocurrency transactions involving illegal activities reached a record high of $20.1 billion last year.
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