Confidential UN Report Exposes Lazarus Group’s $147.5M Stolen Crypto Transfer to North Korea

A confidential UN report obtained by Reuters reveals that North Korea's notorious cybercrime group known as the Lazarus Group transferred millions of stolen cryptocurrencies to the Asian country last year.

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

North Korea's cyber warfare

According to a report submitted last week to observers Tell The UN Security Council Sanctions Committee announced that it was investigating 97 suspected cyberattacks by North Korea on cryptocurrency companies between 2017 and 2024, worth an estimated $3.6 billion.

Observers also reported that North Korean IT workers abroad earn significant income for their country based on information from UN member states and private companies. They were also looking into a New York Times report dated February 6, which claimed that Russia had released $9 million of the $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 lucrative hacks in the cryptocurrency and decentralized finance sectors, with Tornado Cash being their preferred target.

In 2022, the United States imposed sanctions on Tornado Cash, accusing it of helping North Korea. In 2023, two of its founders were charged with facilitating more than $1 billion in money laundering, including a cybercrime group linked to North Korea.

North Korea's various goals in stealing $1 billion worth of cryptocurrencies

A previous report issued by the United Nations Security Council revealed that North Korea obtained 50% of its foreign exchange earnings from cyber attacks. The country has expanded its targeting of cryptocurrency platforms in 2023, reaching more than ever before.

However, the total amount stolen was lower compared to 2022, according to Chainasis. Despite this decline, the number of hacks reached a record high of 20, coinciding with the general decline in the cryptocurrency market.

In 2023, the blockchain analysis firm estimated that the total cryptocurrency stolen amounted to just over $1 billion. Notably, North Korean hackers focused on decentralized finance, stealing approximately $429 million in the process. They also targeted central services, exchanges, and wallet providers, stealing $150 million, $330.9 million, and $127 million, respectively.