Chainalysis: IDR 56.8 Trillion Robbery Will Happen in 2022, Dominated by Lazarus Group

The year 2022 is the year with the worst record for cryptocurrency robbery.(photo: Doc. Pixabay)

JAKARTA - 2022 was the year with the worst record for cryptocurrency thefts. According to the Chainalysis report, on Wednesday 1 February, hackers stole as much as 3.8 billion US dollars (IDR 56.8 trillion), led by attackers linked to North Korea who hauled more than before

The US-based blockchain analytics firm found hacking activity "ebb and flow" throughout the year, with a "big spike" in March and October. October was the single biggest month for cryptocurrency hacks, with $775.7 million stolen in 32 separate attacks.

The cryptocurrency market is also floundering in 2022, as appetite wanes and the risk of crypto companies collapsing. Investors were left with heavy losses and regulators stepped up calls for more consumer protection.

At the time, Chainalysis and other companies confirmed to Reuters that North Korea-linked accounts had lost millions of dollars in value. But that doesn't deter hackers.

Hackers linked to North Korea such as those in cybercrime syndicate Lazarus Group are by far the most prolific cryptocurrency hackers, stealing an estimated $1.7 billion in attacks last year, the report says.

"In 2022, they will break their own record for theft," Chainalysis said. North Korea has denied allegations of hacking or other cyber attacks.

According to a panel of experts monitoring United Nations sanctions, North Korea is increasingly relying on hacking to fund its missile and nuclear weapons programs, especially as trade has shrunk under sanctions and the COVID-19 lockdown.

"It's no exaggeration to say that cryptocurrency hacking is a sizeable part of the country's economy," said Chainalysis.

For the first time last year, US law enforcement seized $30 million in stolen funds from hackers linked to North Korea.

"These hacks will get more difficult and less successful every year," predicts Chainalysis.

According to the report, targets in “decentralized finance” or DeFi, a fast-growing segment of the cryptocurrency sector, accounted for more than 82% of stolen cryptocurrencies in 2022.

DeFi applications, many of which run on the Ethereum blockchain, are financial platforms that allow crypto-denominated loans outside of traditional banks.

“Last year saw a record number of crypto transactions related to illicit activity overall, reaching USD 20.1 billion (IDR 300.6 trillion),” Chainalysis said in January 2023.