Crypto Security Assessment Tool
Evaluate your security posture against North Korea's sophisticated crypto threats. This assessment is based on recommendations from the U.S. Treasury and international security experts.
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Excellent Security Posture
You're following best practices against North Korean crypto threats. Continue using hardware wallets, enabling MFA, and staying vigilant against phishing. Keep checking OFAC's Red Flags list monthly to stay ahead of new threats.
Good, But Needs Improvement
You're on the right track with some security measures, but need to strengthen your defenses against sophisticated threats. Focus on implementing hardware wallets and multi-factor authentication, and avoid using unknown DeFi protocols.
Critical Risk Level
Your security posture is dangerously weak against nation-state threats. Immediately move your crypto to a hardware wallet, enable MFA everywhere, and stop reusing wallet addresses. Review OFAC's Red Flags list and be extremely cautious of unsolicited communications.
North Korea isn’t just building missiles-it’s building digital heists. Since 2017, the regime has turned cryptocurrency theft into its most profitable export, stealing over $6 billion in digital assets to fund its weapons programs. The scale is staggering: a single hack in February 2025 stole $1.5 billion from ByBit, the largest crypto theft ever recorded. And it’s not slowing down. In the first half of 2025 alone, North Korean hackers stole more than $2.17 billion, according to Chainalysis. This isn’t random hacking. It’s state-sponsored, highly organized, and constantly evolving.
Who’s Behind the Attacks?
The main player is the Lazarus Group, a cyber unit tied directly to North Korea’s Reconnaissance General Bureau-a UN-designated entity responsible for espionage and sabotage. These aren’t lone hackers working out of basements. They’re well-funded, disciplined, and backed by a government that sees crypto as a lifeline after decades of sanctions cut off traditional funding. Their tactics are brutal in their simplicity. They target exchanges, DeFi platforms, and NFT marketplaces with phishing campaigns, fake job offers, and compromised multi-signature wallets. In one case, they exploited a scheduled wallet transfer at ByBit by manipulating approval codes during a routine maintenance window. At other firms, they hired engineers under fake identities-thousands of them-working remotely from China, Malaysia, and Eastern Europe. These employees would quietly siphon data and access keys while collecting paychecks from Western tech companies that had no idea they were employing enemy operatives.How the World Is Responding
When the United Nations Panel of Experts dissolved in May 2024, many feared the global response would collapse. Instead, 11 countries formed something new: the Multilateral Sanctions Monitoring Team (MSMT). This group includes the U.S., Canada, Japan, South Korea, the U.K., Germany, France, Australia, Italy, the Netherlands, and New Zealand. Unlike the UN, which required consensus to act, the MSMT moves fast. They share intelligence daily, freeze assets quickly, and coordinate forensic investigations across borders. They don’t work alone. Private firms like Chainalysis, Elliptic, and TRM Labs are their eyes on the blockchain. These companies trace stolen funds through hundreds of wallet addresses, identifying laundering patterns-like moving crypto from Ethereum to Bitcoin, then to Monero, then into NFTs-to obscure the trail. In October 2025, the MSMT reported that North Korea now uses 17 different wallet clustering techniques, constantly changing them to avoid detection. One of the most successful operations happened after the LND.fi hack in early 2025. Within 72 hours, financial intelligence units from five MSMT countries, working with Chainalysis and Elliptic, froze $237 million in stolen funds. That’s rare. Most of the time, recovery rates are below 12%. But this case proved coordinated action can work.The Tools of the Trade
Tracking crypto crime isn’t like tracking cash. It requires deep technical skills. The MSMT has trained 487 analysts worldwide in DPRK-specific blockchain patterns. Training takes 6 to 8 months. Analysts learn to spot the fingerprints of North Korean actors: specific transaction sequences, recurring wallet addresses, and telltale delays in fund movement that match their operational rhythm. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) leads in transparency, publishing regular “Red Flags for DPRK Cyber Activity” updates. These lists show common wallet addresses, exchange pairs, and laundering methods used by Lazarus. But access isn’t free. Chainalysis’ DPRK analytics module costs $45,000 a year per organization. Smaller exchanges can’t afford it. A 2025 survey by the Crypto Compliance Consortium found that compliance costs for small platforms average $1.2 million annually-far beyond what many can pay. Even big players struggle. Coinbase and Binance have adopted MSMT protocols. But many regional exchanges still lack the tools or legal clarity to act. Some don’t even know which transactions to flag.
How North Korea Adapts
The regime doesn’t sit still. In mid-2025, they started using AI to generate fake identities, forged documents, and convincing social engineering messages. One case involved a phishing email that mimicked a Google Docs invite so perfectly that three U.S. defense contractors gave up API keys. The emails used natural language, correct corporate logos, and even referenced internal project names stolen from leaked data. They’re also shifting toward privacy coins like Monero, which are nearly impossible to trace. And they’re moving money through decentralized exchanges (DEXs), where no central company holds records. Cross-chain swaps let them move funds between Ethereum, Solana, and Polygon without leaving a clear paper trail. Their targets are expanding too. In 2024, 35% of all crypto thefts were linked to North Korea. By mid-2025, that number jumped to 38.7%. They’re no longer just hitting exchanges-they’re draining liquidity pools in DeFi, stealing NFTs from collectors, and even hacking smart contracts to reroute funds.What’s Next?
The MSMT announced in October 2025 that it’s launching a Cryptocurrency Intelligence Fusion Cell in early 2026. Modeled after counterterrorism units, this team will combine real-time data from exchanges, financial regulators, and blockchain firms into one dashboard. Initial funding: $85 million. The U.S. has already acted with Executive Order 14155, requiring all exchanges to flag transactions over $10,000 with enhanced due diligence. The EU’s MiCA II regulations, coming in January 2026, will make this mandatory across all member states. But enforcement is uneven. Countries outside the MSMT-like some in Southeast Asia and the Middle East-still lack the laws or political will to act. That’s a problem. North Korea doesn’t care about borders. If one country lets them in, they’ll use it as a backdoor.
What This Means for You
If you’re a crypto user, your risk isn’t just from random hackers anymore. It’s from a nation-state with billions in resources and a mission to steal. Exchanges you trust may be compromised from within. Wallets you think are secure might be targeted by AI-generated phishing links. The best defense? Use hardware wallets. Never reuse addresses. Avoid unknown DeFi protocols. If you’re running a business that handles crypto, invest in blockchain analytics tools-even if it’s a basic subscription. Check OFAC’s red flags list monthly. And if you’re part of an exchange or platform, demand transparency from your vendors about how they’re monitoring for DPRK-linked activity. The fight isn’t over. North Korea will keep adapting. But so are the people trying to stop them. The MSMT isn’t perfect. It doesn’t cover the whole world. Recovery rates are still low. But for the first time, there’s a real, coordinated effort to turn the tables.Frequently Asked Questions
How much money has North Korea stolen through crypto?
Since tracking began, North Korea-linked hackers have stolen more than $6 billion in cryptocurrency. In the first half of 2025 alone, they stole over $2.17 billion, according to Chainalysis. The largest single theft was the $1.5 billion ByBit hack in February 2025.
Who is the Lazarus Group?
The Lazarus Group is a cyber unit operated by North Korea’s Reconnaissance General Bureau. It’s responsible for most of the country’s cryptocurrency thefts, using advanced hacking techniques, social engineering, and insider infiltration to steal funds. It’s been linked to attacks on exchanges, DeFi platforms, and even defense contractors.
What is the MSMT?
The Multilateral Sanctions Monitoring Team (MSMT) is a coalition of 11 nations-U.S., Canada, Japan, South Korea, U.K., Germany, France, Australia, Italy, Netherlands, and New Zealand-that formed in October 2024 to track and disrupt North Korea’s crypto crimes. It replaced the UN Panel of Experts and operates with faster decision-making and shared intelligence.
Can blockchain analytics really track North Korean crypto?
Yes, but it’s hard. Firms like Chainalysis and Elliptic use transaction tracing, wallet clustering, and laundering pattern analysis to identify DPRK-linked activity. They’ve successfully traced and frozen hundreds of millions in stolen funds. But North Korea constantly changes tactics-using privacy coins, cross-chain swaps, and AI-to evade detection.
Why is AI making this worse?
North Korea is using generative AI to create hyper-realistic phishing emails, fake job applications, and forged documents that bypass traditional security checks. In mid-2025, AI-generated messages fooled three U.S. defense firms into handing over sensitive access keys. This makes social engineering attacks far more effective and harder to detect.
What can individual crypto users do to stay safe?
Use hardware wallets, avoid unknown DeFi platforms, never reuse wallet addresses, and enable multi-factor authentication everywhere. Check the U.S. Treasury’s OFAC Red Flags list monthly. Be skeptical of unsolicited job offers related to crypto. If something seems too good to be true, it’s likely a trap.
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