North Korea might rank near the bottom globally for things like civil liberties and freedom of information, but it leads the way in one important category: crypto heists.
Driving the news: As Donald Trump hosted the White House’s first-ever crypto summit yesterday, the industry was still dealing with fallout from last month’s hack of ~US$1.5 billion in crypto assets from trading firm Bybit, which the FBI believes was orchestrated by North Korea.
- The Bybit hack is far and away the largest-ever crypto hack, and might be the largest heist period, surpassing Saddam Hussein’s $1 billion theft from the Central Bank of Iraq in 2003.
Big picture: North Korea is the world leader in crypto hacking, with attacks by state-backed cybercrime enterprises like Lazarus Group and Kimsuky accounting for 35% of all stolen crypto funds last year. On average, North Korean hacks netted almost five times more loot than other hacks.
- With the Bybit heist, North Korean hackers are easily poised to break their own record for most crypto pilfered in a single year.
Why it matters: The hack has rattled crypto markets and was a top factor in causing bitcoin prices to suffer their biggest monthly drop since June 2022. For crypto to ever become a widely accepted asset, hacks of this magnitude will need to stop happening with such alarming frequency.—QH