US, Japan, South Korea Warn Blockchain Industry Over North Korea's Continued Cyber Threats

Key Takeaways

The US, Japan, and South Korea warn the blockchain industry about cyber attacks in North Korea, targeting exchanges and custodians.
Cybercrime attributed to DPRK groups, including Lazarus, has stolen more than $650 million in 2024, threatening global financial stability.

The United States, Japan, and South Korea issued a warning to the blockchain industry about ongoing cyber attacks by North Korean actors, highlighting threats to crypto exchanges, custodians, and individual users.

Organizations linked to North Korea, including the Lazarus Group, have stolen $650 million in 2024, with major breaches at DMM Bitcoin ($308 million), Upbit ($50 million), and Rain Management ($16.1 million).

The US and South Korea also sent a 2023 attack on WazirX ($235 million) and Radiant Capital ($50 million) to North Korean cyber actors.

The attacks use sophisticated methods, including social engineering and malware such as TraderTraitor and AppleJeus. These operations target the crypto sector to fund North Korea's military programs.

“Deeper cooperation among the public and private sectors is critical to disrupting these malicious actors and securing the international financial system,” the joint statement read.

Efforts to counter DPRK cyber activities include initiatives such as the US Illicit Virtual Asset Notification (IVAN) system and the Cryptoasset and Blockchain Information Sharing and Analysis Center (Crypto-ISAC ).

The Japan Financial Services Agency, which collaborates with the Japan Virtual and Crypto Assets Trading Association, has called for business self-inspections to reduce risks.

The three countries plan to strengthen sanctions against North Korean cyber actors and enhance cybersecurity across the Indo-Pacific region through trilateral working groups.