The cryptocurrency industry must reassess its security strategies to halt record-breaking thefts by North Korean hackers, according to Andrew Firman, head of national security at Chainalysis, in a comment to The Block. He noted that international sanctions alone are insufficient.
The expert urged companies to implement rigorous personnel screening, including mandatory video interviews, thorough identity verification, and geolocation monitoring. This would help identify North Korean IT specialists who use forged documents to infiltrate blockchain projects and defense enterprises to access internal infrastructure.
Firman emphasized that completely eliminating the threat is impossible. However, coordinated actions by exchanges, analytics firms, and law enforcement agencies would significantly complicate the lives of hackers. Rapid intelligence sharing would deprive attackers of the ability to quickly move assets.
A Change in Tactics
The focus on preventive measures is due to a sharp increase in activity by the Lazarus group and other hackers linked to Pyongyang. In the first half of 2025, they stole over $2.17 billion in cryptocurrency. According to Chainalysis, this surpasses the figures for the entire year of 2024.
The largest incident was the hack of the Bybit exchange, where attackers withdrew $1.5 billion in Ethereum. This was followed by an attack on the South Korean platform Upbit, resulting in $37 million in damages.
The hackers’ methods have become more aggressive. They now attack through supply chains by hacking third-party service providers. To enhance the effectiveness of their attacks and create convincing “digital identities,” criminals have begun using artificial intelligence.
Money laundering schemes have also become more complex. Funds pass through mixers, OTC brokers, and decentralized exchanges. Hackers use multiple channels simultaneously, creating convoluted transaction routes to obscure their tracks.
Back in September, former Binance head Changpeng Zhao warned of the threat posed by “fake employees” from North Korea.