A recent report by Nikkei-sponsored Elliptic analysis revealed that North Korean hackers stole around $497 million in cryptocurrencies from US businesses since 2017. The analysis focused on firms whose cryptocurrencies were transferred to wallets connected to North Korea’s state-sponsored Lazarus Group, a group notorious for exploiting several DeFi projects.

The United Nations and the US Government have been warning about North Korea's cybercrime activities to fund its missile program. A UN report claimed that hackers in the country stole over $1 billion in crypto assets in 2022, more than double the amount from the previous year.

The study found that the hackers relied on ransomware payments and hacking to get their illicit funds. They also stole directly from crypto exchanges or exploited vulnerabilities in cross-chain DeFi projects like Horizon. In some cases, they hacked businesses' data and forced them to pay ransom in cryptocurrencies.

This analysis highlights the ongoing threat of cybercrime to the cryptocurrency industry, with state-sponsored groups increasingly targeting it. It serves as a reminder of the need for robust security measures and increased regulation to prevent these types of hacks.

In response to this, the US Department of Justice has vowed to increase its scrutiny of the crypto industry, particularly exchanges, mixers, and tumblers that enable malicious players to carry out their crimes. The regulatory agency hopes to deter other businesses from allowing bad actors to profit from their illegal activities.

Overall, the Elliptic analysis underscoresthe need for continued vigilance and proactive measures to prevent cybercrime in the crypto space. As cryptocurrencies become more widely adopted, they are likely to attract increased attention from hackers and other malicious actors.

It is also worth noting that North Korea is not the only state-sponsored actor involved in cybercrime in the crypto space. Other countries like Russia and Iran have also been implicated in similar activities, highlighting the global nature of the threat.

As the crypto industry continues to grow and evolve, it will be crucial to develop effective strategies for combating cybercrime and ensuring the security of digital assets. This includes investing in robust security measures and regulatory frameworks that help prevent illicit activities while also promoting innovation and growth in the sector.