Crypto Crime on the Decline? Not for North Korea's Hackers
Coingeek3 weeks ago
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Crypto Crime on the Decline? Not for North Korea's Hackers

General Bitcoin News
crypto
ransomware
northkorea
blockchain
scams
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Summary:

  • Crypto crime overall down by 19.6%, but North Korean hackers thrive.

  • Ransomware payments hit $459.8 million in the first half of 2024.

  • DMM exchange hack marks a shift to targeting centralized exchanges.

  • Bitcoin ATMs linked to $65 million in scams, mostly affecting seniors.

  • North Korean hackers employ advanced social engineering tactics to infiltrate crypto firms.

Overview of Crypto Crime Trends

Overall, crypto crime may be on the decline, but certain criminals, particularly from North Korea, are thriving. Last month, Chainalysis released two summaries of its mid-year update on crypto crime, revealing a mixed picture of how blockchain technology is being exploited for illicit activities.

Key Findings from Chainalysis

  • Crime Activity Decline: Aggregate illicit activity dropped by 19.6% year-on-year to $16.7 billion. However, this number is expected to rise as more illicit addresses are identified.
  • Ransomware and Hacking Surge: While overall crime decreased, ransomware and hacking incidents increased significantly, with stolen funds rising to $1.58 billion in the first half of 2024. This spike is attributed to the rising fiat value of tokens.
  • Centralized Exchanges Targeted: The largest hack this year, amounting to $305 million, occurred at Japan’s DMM exchange, indicating a shift from decentralized finance (DeFi) protocols to centralized exchanges as primary targets.

Ransomware Payments on the Rise

Ransomware payments totaled $459.8 million through June, slightly ahead of last year's figures. The increase in individual payments, like the $75 million paid to the Dark Angels group, reflects a worrying trend in ransomware incidents.

Other Crypto Crimes

  • Child Exploitation and Scams: The second summary from Chainalysis highlighted the rise of child sex abuse material (CSAM) networks and scams like ‘pig butchering.’
  • Chinese CSAM Vendors: There’s been a noticeable rise in Chinese CSAM vendors accepting cryptocurrencies, with inflows hitting 39% of the global total this spring.

The Role of Bitcoin ATMs

The FTC recently reported that Bitcoin ATMs are being used as payment portals for scammers, with losses reaching $65 million in the first half of 2024. Seniors are the most vulnerable victims, accounting for two-thirds of these losses.

North Korea's Cyber Operations

North Korean hackers, particularly the Lazarus Group, continue to execute elaborate scams and hacks to fund their regime. The FBI has warned of tailored social engineering attacks targeting the crypto industry, employing tactics to deploy malware and steal cryptocurrency.

Conclusion

Despite the overall decline in crypto crime statistics, the landscape remains complex, with certain actors exploiting weaknesses for substantial gains. The findings from Chainalysis and alerts from the FBI highlight the ongoing challenges in combating crypto crime, particularly from state-sponsored actors like North Korea.

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