North Korea Just Had Its Biggest Year Ever Stealing Cryptocurrency

A Record-Breaking Haul for North Korean Hackers

In a stunning escalation of cyber threats, has marked 2025 as its most lucrative year yet in the world of theft. According to blockchain analytics powerhouse Chainalysis, hackers backed by the isolated regime have pilfered over $2.02 billion in digital assets since January. That’s more than 50% higher than their 2024 totals, pushing their cumulative crypto theft since 2016 to a staggering $6.75 billion.

This surge underscores how North Korea has turned vulnerabilities in the crypto ecosystem into a vital lifeline, bypassing international sanctions. U.S. and UN officials have long warned that these stolen funds directly fuel the nation’s nuclear weapons and ballistic missile programs, making every hack a national security concern.

The Bybit Breach: Crypto’s Largest Heist

The crypto sector faced $3.4 billion in total thefts through early December 2025, with North Korean actors claiming the lion’s share. The standout event was the late February attack on Dubai-based exchange Bybit, where affiliates of the regime siphoned off $1.5 billion—the biggest single crypto heist in history.

Andrew Fierman, Chainalysis’s head of national security intelligence, explains the appeal: “Cryptocurrency’s global 24/7 access creates a unique value proposition for the regime to target.” Unlike traditional finance, crypto operates without borders or banking hours, making it ideal for state-sponsored cybercriminals.

Why Crypto Heists Are North Korea’s Go-To Funding Method

Eun Young Choi, a former federal prosecutor turned attorney at Arnold & Porter, calls crypto heists “the easiest way for DPRK cyber actors to fund their regime.” North Korean groups like Lazarus have honed their skills over years, evolving from basic phishing to sophisticated supply chain attacks and zero-day exploits.

The industry’s explosive growth plays right into their hands. As crypto’s market cap swells and adoption surges—especially with pro-crypto policies from the Trump administration aiming to position the U.S. as the “crypto capital of the world”—opportunities multiply. More exchanges, DeFi platforms, and wallets mean more entry points for exploits.

• Increased Sophistication: Hackers now deploy advanced malware that evades detection, targeting private keys and hot wallets.
• Market Boom: Higher asset values turn modest thefts into massive windfalls.
• Global Reach: Victims span continents, complicating law enforcement.

Mastering the Art of Crypto Laundering

Stealing is just step one; laundering is where North Korean hackers shine. Post-Bybit, they orchestrated a labyrinthine scheme: shuffling funds across hundreds of wallets, bridging to alternative blockchains like Ethereum to Solana, and tumbling assets through DeFi protocols.

These tactics mix illicit proceeds with legitimate traffic, making tracing nearly impossible without specialized tools. Decentralized exchanges (DEXs) and privacy coins further obscure trails, allowing hackers to cash out via over-the-counter (OTC) desks or peer-to-peer trades.

This week, Sen. Elizabeth Warren, the Senate Banking Committee’s top Democrat, urged the U.S. Treasury and Justice Department to probe how North Korean actors exploit DeFi for regime funding. Her letter highlights a growing worry: as DeFi TVL (total value locked) hits new highs, it becomes a hacker playground.

The Bigger Picture: Crypto Security in the Spotlight

Despite recent price dips, 2025 has been a policy win for crypto, with regulatory clarity and institutional inflows. Yet, Fierman warns: “Crypto adoption only presents more opportunity, but North Korea is simply being more targeted and patient in finding the right candidates to exploit.”

Exchanges and projects must step up. Common vulnerabilities include:

1. Weak Multi-Factor Authentication (MFA): SMS-based MFA is child’s play for SIM-swappers.
2. Hot Wallet Overexposure: Billions sit in internet-connected wallets ripe for draining.
3. Third-Party Risks: Hacks often stem from compromised vendors.

Best practices for protection:

• Implement hardware wallets and multi-sig setups.
• Conduct regular audits with firms like Chainalysis or PeckShield.
• Adopt AI-driven anomaly detection for transactions.
• Collaborate via initiatives like the Crypto Defense Alliance.

What Lies Ahead for Crypto and Geopolitics

North Korea’s crypto spree signals a new era of state-sponsored cybercrime. As sanctions tighten traditional evasion routes like fentanyl trafficking or coal smuggling, digital assets fill the gap. Expect hackers to target emerging sectors like tokenized real-world assets (RWAs) and layer-2 scaling solutions.

Regulators face a dilemma: clamp down too hard, and innovation flees offshore; too loose, and rogue states thrive. International cooperation—sharing blockchain intel via platforms like the Financial Action Task Force (FATF)—is key.

For investors and users, vigilance is paramount. The Bybit hack proves no platform is invincible, but fortified security can deter even the most persistent foes. In the battle for blockchain’s future, staying one step ahead of ‘s cyber wolves is non-negotiable.

Key Takeaways

• stole $2.02B in crypto in 2025, led by the $1.5B Bybit hack.
• Total since 2016: $6.75B, funding weapons programs.
• Hackers leverage DeFi for laundering amid industry growth.
• Boost security with multi-sig, audits, and global intel-sharing.

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