The largest theft in the history of digital currencies, with a total of about $2.2 billion, and the surprise is that more than half of this amount, about $1.3 billion, was for North Korean hackers, who doubled their thefts compared to last year! This is according to a study by Chainalysis.
These hackers use strange tricks like pretending to be programmers or tech workers and working remotely. This way, they can hack into cryptocurrency companies and large technology institutions.
One of the biggest thefts this year was in May, when hackers stole 4,500 bitcoins (worth about $305 million) from Japanese cryptocurrency exchange DMM Bitcoin. The theft was so catastrophic that the exchange shut down and moved customer accounts to other platforms.
Also in India, a major hack caused a cryptocurrency exchange to lose around $235 million.
The United States accuses North Korea of using cybercrimes, such as cryptocurrency theft, to fund its nuclear and ballistic missile programs. According to international reports, up to a third of North Korea's missile program could be funded by cybercrimes.
Cybersecurity is at risk
The study showed that thefts increased by 21% this year compared to last year. The main reason for these thefts is the hacking of the private keys that control users’ accounts. When hackers hack a centralized platform that manages large amounts of money, the results are catastrophic.
Attempts to stop thefts
In a new development, a US federal court in St. Louis has indicted 14 North Koreans, accusing them of being part of a long-running conspiracy to extort money from US companies and divert it to fund Pyongyang's weapons program.
Also, the US State Department has announced a $5 million reward for anyone who provides information about these plots.
It is clear that digital currencies have become an open arena for cyber warfare. The only solution is for governments and companies to cooperate to develop stronger protection technologies and stand up to these threats.
At the same time that these thefts are happening, Bitcoin ( $BTC ) has seen its value rise significantly this year. This has increased the hackers’ profits, and some analysts link this to the rise of Donald Trump to power, as he is expected to be more open and supportive of cryptocurrencies than Joe Biden.