The United States, Japan, and South Korea have issued a stark warning about the escalating threat posed by North Korean cryptocurrency hackers. Groups like the infamous Lazarus Group have been linked to high-profile Web3 cyber thefts, including the $600 million Ronin network breach and a $230 million WazirX exchange heist.

In a joint statement released on January 14, the three nations highlighted the severe risk to the global financial system’s stability. The statement underscored North Korea’s alleged use of stolen crypto assets to fund its missile programs. “Our governments are committed to recovering stolen funds and cutting off illicit revenue streams for DPRK’s weapons of mass destruction,” it declared.

This collaborative stance follows South Korea’s sanctions against 15 North Koreans suspected of raising funds for nuclear weapons through crypto heists.

North Korean hackers made headlines in 2024 by stealing over $1.34 billion in digital assets, a 102% increase from the $660 million stolen in 2023, according to Chainalysis. These attacks accounted for 61% of the total crypto stolen globally last year. Major incidents included a $305 million DMM Bitcoin hack, $50 million breaches of Upbit and Radiant Capital, and a $16 million Rain Management theft.

Experts warn that the sophistication of North Korea’s methods is growing. Chainalysis reported an increase in mega-heists yielding $50 million or more. This marks a significant shift from 2022, when most exploits yielded less than $50 million.

As these attacks escalate, international cooperation between governments and private sectors remains critical to mitigating the threat and protecting the integrity of the global cryptocurrency landscape.