Tech

Bitcoin: North Korean hackers lost millions of dollars due to falling prices

The fall in the price of Bitcoin and other cryptocurrencies does not only impact users. North Korean hackers are also recording heavy losses, as revealed by the latest report from the company Chainalysis.

North Korea loss bitcoins
Credits: Pixabay

As you may know, the price of Bitcoin has been in free fall for the past few weeks. As of June 20, 2022, the value of BTC has fallen below the $19,000 mark, unheard of for 18 months. Obviously, this situation is catastrophic for investors. And unsurprisingly, when the queen of cryptocurrencies goes bad, other digital currencies cough too.

The price of Ethereum has stabilized around €1008 at the time of writing, after a 10% drop. In fact, several cryptocurrency platforms like Coinbase fear being insolvent if the situation continues or worsens. But imagine that the platforms and the average owners of BTC and cryptocurrencies are not the only ones to suffer from the fall in prices.

North Korea loses millions due to BTC crash

This is also the case for North Korean pirates, who are recording unprecedented losses. In effect, the value of the country’s cyberwar treasury has dropped drastically. As the research firm Chainalysis reveals, the funds stolen in BTC and various cryptos during 49 hacks between 2017 and 2021 lost value.

Initially estimated at $170 million, the value of the loot is now $65 million. This represents a deadweight loss of 61%! Moreover, the sums obtained (tens of millions of dollars) during a major attack in 2021 even lost 80% of their value with current prices. As the analysis company specifies, these are accounts containing dirty money (cryptocurrency stolen during cyberattacks) awaiting laundering.

Also read: Bitcoin – despite the crash, energy consumption remains considerable

With the fall in the prices of BTC and other currencies, Pyongyang is losing essential funds to develop its nuclear weapons program. Indeed, for several years now, cryptocurrency theft has become one of the main sources of income for the regime. As the South Korean Defense Analysis Institute in Seoul points out, these deadweight losses incurred by North Korea come as the dictatorship conducted a record number of missile tests, at an estimated cost of $620 million.

North Korea, reaching out to its embassy in London for comment, merely described the facts as “Total Fake News”. For his part, the North Korean foreign minister called the allegations US propaganda.

Source : The Verge

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