The FBI warned that groups linked to North Korea might try to convert stolen cryptocurrency worth more than $40 million into cash.
The FBI identified the activity on the blockchain as the work of a group they track as TraderTraitor, also known as Jade Sleet.
This group reportedly moved around 1,580 bitcoins from various cryptocurrency thefts within the last day and is holding the funds in six different wallets.
North Korea, notorious for Crypto Theft
North Korea is known for blurring the lines between cyber warfare, spying, and financial crime. TraderTraitor has been tied to a series of attacks on blockchain and cryptocurrency exchanges, aiming to steal digital assets and generate illegal income for their country, which is under sanctions.
Some notable thefts include $60 million from Alphapo on June 22, 2023, $37 million from CoinsPaid on the same day, and $100 million from Atomic Wallet on June 2, 2023. They’ve also previously targeted Sky Mavis’ Ronin Network and Harmony Horizon Bridge.
TraderTraitor’s allies
This group’s activities intersect with another North Korean group called APT38 (also known as BlueNoroff or Stardust Chollima), which is part of the larger Lazarus constellation. Mandiant, owned by Google, recently connected TraderTraitor to UNC4899, a hacking crew responsible for the JumpCloud hack in June 2023.
Blockchain intelligence firm TRM Labs has compiled data suggesting North Korean hackers have stolen over $2 billion in cryptocurrencies since 2018 in around 30 attacks, with $200 million stolen in just 2023.
The FBI advised private companies to closely examine the blockchain data linked to these addresses and be cautious about engaging in transactions with or derived from them.
Red Alert for organizations
The huge amount of stolen cryptocurrency, estimated at over $2 billion since 2018, underscores the financial impact of such attacks.
This reinforces the urgency for private sector entities to remain vigilant, employing advanced security measures and closely monitoring blockchain transactions associated with potentially compromised addresses.
As technology advances, collaboration between law enforcement agencies, cybersecurity firms, and businesses becomes a core in tackling such threats.
By staying informed, adopting robust security practices, and fostering cooperation, the global community can better defend against cybercriminals’ and state-affiliated hacking groups’ disruptive and financially damaging actions.
Anas Hasan
August 24, 2023
2 years ago
