In March 2022, a senior software engineer based in Singapore received a job offer from a gaming company. This was a welcome relief, given the challenging circumstances at their current workplace, Sky Mavis, creators of the play-to-earn game Axie Infinity. The company had experienced a significant setback as the value of its in-game cryptocurrency took a nosedive.
Upon completing the job application process, the engineer eagerly opened the PDF containing the salary details, only to discover that the job offer was fraudulent. The consequences were severe — North Korean hackers had successfully breached Sky Mavis’s security, gaining access to the private keys essential for the company’s cryptocurrency account. The result was a staggering heist, amounting to approximately $600 million, marking one of the most significant thefts in history.
North Korea’s motivation for such cybercrimes stems from the impact of international sanctions on its ability to engage in legitimate trade. Facing restrictions on exports and imports, the country sought alternative means of obtaining foreign currency, eventually turning to cryptocurrency theft as a primary income source.
The genesis of North Korea’s economic struggles dates back to 2017 when heightened tensions led to stringent sanctions imposed by the United Nations. These measures aimed to sever North Korea’s access to foreign currency, impeding its ability to fund nuclear weapons and missile programs.
In response, North Korea delved into various illicit activities, including coal trading, where ships engaged in covert ship-to-ship transfers to sidestep sanctions with potential involvement from China and Russia. Illegal methods such as smuggling also played a role, with North Korea utilizing its embassies to sell prohibited goods such as weapons, drugs and gold. The embassies operated with the objective of meeting annual foreign currency quotas set by Pyongyang, contributing to the regime’s financial sustenance.
Despite engaging in diverse schemes, North Korea’s revenue from these activities remained limited, prompting a shift of focus toward cryptocurrency. In 2017, the country’s hackers initiated cybercrimes by deploying the Wannacry virus, a large-scale attack affecting various entities, including hospitals and government agencies. While the attack’s effectiveness was curtailed by a kill switch and uncertainty regarding file decryption, North Korea received approximately 51 Bitcoins in ransom payments.
However, realizing the potential for substantial earnings, North Korea intensified its efforts by targeting cryptocurrency exchanges. These platforms, lacking regulatory oversight and often having inadequate security, became vulnerable targets for hackers. In 2022, North Korea’s hacking operations accounted for half of all cryptocurrency theft globally, amassing a staggering $1.65 billion, surpassing earnings from ransomware and other exports combined.
This influx of funds emboldened Supreme Leader Kim Jong-un, who celebrated by conducting an unprecedented number of missile launch tests. Speculation now suggests that North Korea may be selling weapons to Russia, further diversifying its revenue streams. Despite the growing threat, there is currently no comprehensive plan in place to counter North Korea’s cybercrimes. Cryptocurrency exchanges remain susceptible to exploitation, posing a continued risk of financing nuclear weapons and other illicit activities.
The growing threat of hackers allegedly backed by the North Korean government is a concern to crypto exchanges and other industry businesses such as Riot Blockchain Inc. (NASDAQ: RIOT). Vigilance is recommended because no one can predict what crypto firms will be targeted next.
About CryptoCurrencyWire
CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CryptoCurrencyWire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer
CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com
CryptoCurrencyWire is powered by IBN
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://www.cryptocurrencywire.com/under-the-chokehold-of-sanctions-pyongyang-finds-forex-trove-in-crypto-theft/
