Blockchain-based payment systems, applications, and marketplaces are all great, but there is a major problem. It is difficult to stop cyber attackers where technology exists, and the crypto space offers them a massive loot. For example, when a DeFi bridge is hacked, they can obtain millions of dollars in loot. This was exactly the case today.
North Korean Hackers
A North Korean hacker group called Labyrinth Chollima launched a series of attacks to steal cryptocurrency from customers of US technology company JumpCloud. The group sent an email to JumpCloud customers asking them to change their credentials as part of an ongoing incident.
JumpCloud, based in Colorado, acknowledged the Labyrinth breach last week and has been tracking it until June 27. They are working with cybersecurity firm CrowdStrike Holdings to uncover the details of the attack. So far, there has been no confirmation of an actual crypto theft. Security experts say that attacks targeting multiple companies like this are a new case. Previously, hackers from Pyongyang targeted one company at a time.
Tom Hegel, a cybersecurity researcher unrelated to the investigation, commented on the breach:
“North Korea is really accelerating their game.”
The Trouble with Crypto
North Korea clearly fits this description. Many countries and international organizations impose sanctions on North Korea due to its nuclear weapons program. Researchers interpreting the recent JumpCloud attack argue that most of the attacks from North Korea are aimed at financing government initiatives.
Blockchain security firm Chainalysis confirmed last year that hack groups linked to North Korea stole approximately $1.7 billion worth of cryptocurrency. The breach carried out by Labyrinth Chollima follows findings that North Korean hackers stole $1.7 billion worth of digital assets in 2022.
Life in North Korea is difficult, and the biggest aspiration for young people in the country is to join a team of thieves in order to live a better life. North Korean hackers have carried out major attacks, including hacking into a physical bank. In recent years, they have specifically targeted DeFi protocols as the demand in the crypto space has increased. They successfully stole millions of dollars in the attack on the Ronin bridge at the beginning of last year.
Today, mainstream media extensively covered this issue, and it could be related to the recent drop in cryptocurrency prices.
