Crypto Scam: U.S, Japan and South Korea Warns of North Korean Hackers

The United States, Japan, and South Korea have issued a joint statement to address the surge in crypto scam threats from the North Korean hackers. The joint statement noted that despite the threats entities like Lazarus Group present, it is proactively working to disrupt their potency.

The Lingering Crypto Scam Threat

According to the joint statement, the countries noted that North Korean hackers still pose a threat to the three countries and their international allies. The countries claim that the DPRK’s hackers target crypto exchanges and related platforms to siphon funds.

Citing good examples, the statement pointed out the DMM Bitcoin exploit that saw a loss of $308 million. Besides this, Upbit also suffered a $50 million loss, with Rain Management recording a $16.13 million loss. One of the major highlights of last year’s crypto scam cases featured the $235 million WazirX loss.

The trading platform’s loss still lingers, with Binance delisting WRX, its native token, in December. The three countries asserted that the funds stolen by these group(s) of hackers have one primary goal. This includes funding the Inter Continental Ballistic (ICB) program of the  North Korean regime.

Tactics to Fight North Korean Hackers

As the U.S, Japan, and South Korea revealed in their statement, these hackers make use of well-disguised social engineering attacks If successful, they then install malware like AppleJeus and TraderTraitor to carry out the attacks.

Despite a series of sanctions, the crypto scam capabilities of the North Korean hackers have not slowed down. Amid the sensitization calls from each country, the trio have continued to face such exploits from the DPRK.

To guard against the influence of these hackers, the countries advocated for information sharing among key stakeholders. They advised a functional working relationship between public and private partners to disrupt the hacker’s revenue source. As detailed in the statement, imposing sanctions might deter the cyber criminal’s operational model.

What to Note Moving Forward

It is worth noting that President Joe Biden’s administration acted in a strict manner toward regulating the digital currency ecosystem. One of the key premises is that the ecosystem helps breed criminals, as critics claim the asset has no intrinsic value.

In a bold move, Bitcoin-critic Sen Elizabeth Warren has sent an open letter to the nominated SEC Chair Paul Atkins to take a related tough stance against crypto. With this warning and the chances of further threats from North Korea, it remains unclear how the new leadership will handle these hacker groups.