FBI warns crypto sector of North Korean threats after recent hacks

• FBI warns of North Korean cyber threats targeting DeFi and crypto firms.
• Recent hacks led to $313.86 million in losses, including $40 million in stolen Bitcoin.

On the 3rd of September, the FBI issued a critical alert to employees of digital asset companies, highlighting a sophisticated new cyber threat from North Korea.

FBI warns of North Korea’s crypto attacks

The agency revealed that North Korean cybercriminals are targeting staff at decentralized finance (DeFi) and cryptocurrency firms.

To execute the same they are using social engineering schemes aimed at stealing funds.

The warning emphasized that these attackers have conducted thorough research on companies involved with cryptocurrency-linked ETFs. 

Source: ic3.gov/

What’s the scam all about?

The FBI’s alert details that the North Korean cyber actors are using deceptive tactics to target employees in the digital asset sector.

Their schemes involve fabricating job offers or investment opportunities and masquerading as prominent figures linked to specific technologies.

To further their agenda, the scammers often direct victims to a “pre-employment test” or other seemingly legitimate downloads, which are, actually designed to install malware.

As per the press release published by the FBI, 

“The actors usually attempt to initiate prolonged conversations with prospective victims to build rapport and deliver malware in situations that may appear natural and non-alerting,”

Not the first time!

Well, this isn’t the first time such a thing has happened. Recently, a $235 million breach at WazirX, was suspected to be orchestrated by North Korean hackers. 

Then, on 22nd August, 2023, the FBI issued a warning to cryptocurrency firms about activities involving $40 million worth of stolen crypto tokens linked to North Korean hackers.

The agency reported that the Lazarus Group, a notorious hacker group associated with North Korea’s TraderTraitor network, has moved approximately 1,580 Bitcoin, to various addresses.

The situation underscores the increasing prevalence of crypto-related scams and hacks. 

This trend was further confirmed by blockchain security firm Peckshield, which reported over 10 significant hacks in August alone, resulting in $313.86 million in losses.

“The 2 largest hacks, both involving unauthorized transfers (#Phishing), accounted for 93.5% of the total stolen funds, amounting to $293.4 million.”

The report indicates that phishing attacks, particularly involving Bitcoin [BTC] and the decentralized stablecoin Dai (DAI), were the primary contributors to these substantial losses.