North Korean crypto hacks down 80% but that could change overnight: Chainalysis
Cryptocurrency stolen by North Korea-linked hackers is down a whopping 80% from 2022 — but a blockchain forensics firm says it isn’t necessarily a sign of progress.
As of Sept. 14, 2023, North Korea-linked hackers have stolen a total of $340.4 million worth of cryptocurrency, down from a record $1.65 billion reported funds stolen in 2022.
“The fact that this year’s numbers are down is not necessarily an indicator of improved security or reduced criminal activity,” Chainalysis said in a Sept. 14 report. “We must remember that 2022 set a dismally high benchmark.”
“In reality, we are only one large hack away from crossing the billion-dollar threshold of stolen funds for 2023.”
Over the past 10 days, North Korea’s Lazarus Group has been linked to two separate hacks — Stake ($40 million) on Sept. 4 and CoinEx ($55 million) on Sept. 12, combining for a loss of over $95 million.
With the latest two hacks, North Korea-linked attacks have made up for about 30% of all crypto funds stolen in hacks this year, noted Chainalysis.
North Korea turns to dubious exchanges, mixers
Meanwhile, Chainalysis has found that North Korean hackers have become increasingly reliant on certain Russian-based exchanges to launder illicit funds over the last few years.
The firm said North Korea has been using various Russian-based exchanges since 2021. One of the largest laundering events involved $21.9 million in funds transferred from Harmony’s $100 million bridge hack on June 24, 2022.
United States-sanctioned cryptocurrency mixers Tornado Cash and Blender have also been used by Lazarus Group in the Harmony Bridge hack and other high-profile hacks committed by the group.
We’ve observed instances of DPRK-linked hackers sending funds to Russian services since 2021. But this year’s transfer of $21.9M stolen from Harmony to a high-risk Russian exchange is an escalation of that activity. You can see examples of some of those transactions below. pic.twitter.com/S9cDxlk9Hu
— Chainalysis (@chainalysis) September 14, 2023
Related: FBI flags 6 Bitcoin wallets linked to North Korea, urges vigilance in crypto firms
The United Nations is making an effort to curtail North Korea’s cybercrime tactics at the international level — as it is understood North Korea is using the stolen funds to support its nuclear missile program.
Meanwhile, the firm hopes increased smart contract audits will make life tougher for these hackers.
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The European Securities and Markets Authority (ESMA) has warned that crypto will increasingly threaten traditional financial markets’ stability as the industry grows and becomes more entwined with traditional finance players.
“We cannot rule out that future sharp drops in crypto prices could have knock-on effects on our financial system,” ESMA’s executive director Natasha Cazenave said in an April 8 statement to the Economic and Monetary Affairs Committee.
Cazenave noted, however, that crypto currently only accounts for 1% of global financial assets and is not yet significant enough to cause major “spillover effects” into traditional financial markets.
She warned that interconnections between crypto and traditional markets are rapidly growing — particularly in the more crypto-friendly US — and called for closer monitoring.
“Crypto-assets markets evolve quickly, in an often unpredictable manner, and we need to keep a close eye on these developments,” Cazenave said, adding:
“Turmoil, even in small markets, can originate or catalyze broader stability issues in our financial system.”
Cazenave’s concerns ranged from spot crypto exchange-traded funds and stablecoin use to hacks, scams and scandals — highlighting the recent $1.4 billion Bybit exploit and FTX’s collapse in November 2022.
Today in the ECON Committee, the role of crypto assets in relation to financial market stability was discussed. The European Central Bank (ECB) and the European Securities and Markets Authority (ESMA) were present.
I raised a critical question about the digital euro.… pic.twitter.com/KST7FRBhFF
— Engin Eroglu (@EnginEroglu_FW) April 8, 2025
The European Union has already implemented several measures to safeguard against crypto risks, most notably the Markets in Crypto-Assets (MiCA) regulation that was rolled out last year.
While Cazenave said MiCA marked a “breakthrough” for crypto regulation, she added that there is “no such thing as a safe crypto-asset” and that more rules may need to be implemented to mitigate future risks.
Related: EU could fine Elon Musk’s X $1B over illicit content, disinformation
Her comments come as both crypto and the stock markets have experienced double-digit falls over the last few weeks as the Trump administration continues to follow through on its tariff plans.
Europe lags US in crypto adoption
While crypto adoption has accelerated in the US, Cazenave noted that over 95% of European banks remain on the sidelines, with no involvement in crypto-related activities.
However, retail participation is on the rise, with an estimated 10% to 20% of European investors having crypto exposure, which is in line with growing global interest, Cazenave said.
Most reports measuring US crypto adoption suggest that the range of adoption is between 15% and 28% of the population.
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Former NBA star Shaquille O’Neal has been granted final court approval to settle a class-action lawsuit for $11 million with Astrals non-fungible token (NFT) buyers.
Florida federal court judge Federico Moreno granted approval of the settlement between O’Neal and the class group led by Daniel Harper in an April 1 order made available on April 8.
The deal created a fund of up to $11 million for eligible class members and awarded $2.9 million in attorney fees and costs. All those who purchased Astrals NFTs from May 2022 to Jan. 15 and those who purchased the project’s native GLXY tokens up until mid-January are eligible.
“The fee sought by lead class counsel has been reviewed and approved as fair and reasonable by plaintiffs,” Moreno’s order read.
O’Neal was hit with the lawsuit in May 2023 over his founding and promotion of the Solana-based Astrals NFT project, which the suit claimed was an “offer and sale of unregistered securities.”
The class group said they bought Astrals NFTs and “suffered investment losses” due to O’Neal’s “conduct” in promoting the project.
In August, Judge Moreno recognized that the class suit had alleged that the former NBA player was a seller of the NFTs. O’Neal agreed to the settlement in November.
Screenshot from court order on final settlement. Source: Courtlistener
NFT sales slump
The Astrals NFT collection consisted of 10,000 unique 3D digital collectibles created in April 2022 by the artist Damien Guimoneau in a Solana-based project that promoted a virtual world where users could socialize and play with others, including the basketball star.
Related: NFT sales plunge 63% in Q1, but Pudgy Penguins, Doodles buck trend
There has been no activity or sales from the collection for the past two years, according to NFT marketplace OpenSea.
Overall, NFT sales are still in deep bear market territory, with just $27 million sold as of April 7, down from more than $2 billion per week at the end of 2021, according to CryptoSlam.
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