North Korean hackers have stolen an estimated $3 billion worth of cryptocurrency since 2017, according to Microsoft’s latest “Digital Defence Report for 2024.” This staggering sum is being funneled into North Korea’s nuclear and missile programmes, with stolen crypto playing a critical role in financing the regime’s military ambitions.

$1 Billion Stolen in Just One Year

The report notes that between $600 million and $1 billion were stolen by North Korean hackers last year alone. These funds have reportedly financed over half of Pyongyang’s nuclear development efforts. The theft highlights the growing threat posed by state-backed cybercriminals, who are using increasingly sophisticated methods to target the cryptocurrency industry.

Microsoft has identified several new North Korean hacking groups—Moonstone Sleet, Jade Sleet, Sapphire Sleet, and Citrine Sleet—who have been actively targeting cryptocurrency organisations. Moonstone Sleet, in particular, has developed a new ransomware variant, using it to infiltrate aerospace and defence sectors for intelligence gathering and financial gain.

Expansion of Ransomware Operations

Microsoft’s analysts suggest that the emergence of these new groups indicates a significant expansion of North Korea’s involvement in ransomware activities. By increasing its reliance on cybercrime, the regime is boosting its financial resources while advancing its strategic interests.

Beyond North Korea, Microsoft’s report also warns of increasing cyber threats from other nation-states, including Russia, China, and Iran. As geopolitical conflicts continue to rise in Europe and the Middle East, the threat of cyberattacks is expected to intensify.

International Efforts to Combat Cybercrime

In response to these growing threats, South Korea, the United States, and Japan have agreed to increase joint efforts to combat North Korea’s illegal cyber activities. These countries are focusing on building stronger partnerships with private-sector cryptocurrency service providers to raise awareness and protect against Pyongyang’s expanding cyber operations.

The rise in crypto-related cybercrime is a stark reminder of the importance of robust security measures in the digital currency space, particularly as nation-states increasingly turn to cyber tools for financial and strategic gain.