A report from Nikkei suggests that Japan has been the country most impacted by North Korean cyberattacks on cryptocurrency platforms and users. The report is based on a study conducted by Elliptic, a blockchain analytics company, which examined the cryptocurrency losses between 2017 and 2022 due to hacks and ransomware incidents believed to be linked to North Korea.
The study estimates that Japan lost crypto assets worth $721 million to these attacks, which represents 30% of the global total loss exceeding $2.3 billion. The research further indicates that Asian countries have been the primary targets of North Korean hackers, with Vietnam, Hong Kong, and the United States trailing Japan in terms of losses.
Also Read: North Korea Sets Record in Stealing Cryptocurrency Assets in 2022
Weak Security Measures and Lazarus Group Exploits
Elliptic attributes the high susceptibility of Japan and Vietnam to their inadequate security measures in the cryptocurrency domain. According to unnamed sources cited in the report, hackers successfully infiltrated at least three Japanese crypto exchanges between 2018 and 2021. The infamous Lazarus Group from North Korea has been tied to some of the significant crypto thefts, including the exploits of Ronin Bridge and Harmony Bridge.
The report also points out that North Koreans have allegedly used decentralized finance services and crypto mixers to launder their ill-gotten funds and NFTs.
