DeFiance Capital founder Arthur Cheong has warned that hackers backed by North Korea have devised sophisticated methods to target crypto companies.
On Friday, Cheong shared on Twitter that these hackers are using new forms of social engineering designed to “slip through our mental defenses.” They claim that this information has come to the fore through research and interaction with leading cyber security experts.
According to Cheong, at the forefront of these coordinated attacks is BlueNorOff, a cybercrime organization sponsored by North Korea.
The crypto expert said that he decided to make his findings public only so that the entire crypto industry remains on high alert. He said the group was very resourceful and determined and that it is nothing to guess what they are capable of:
“They may also change equipment and attack patterns in the future. Once the current attack method becomes less effective, such as the trojanized DeFi app and the recently discovered wallet attack. Given the success, it is likely that North Korea will devote more resources to this group to increase the intensity of the attack.”
Cheong seems to be speaking from a place of concern, given that he was the victim of a social engineering attack last month. Using “spear-phishing” emails, hackers were able to deploy malware to his device and extract the seed phrase for his hot wallet. They lost $1.7 million worth of NFTs in the attack.
He said evidence backed by the cyber security firm confirmed that BlueNorOff was behind the attack.
The Twitter thread not only highlighted the security risks, but also provided some solutions. Cheong advised companies and individuals in the cryptocurrency space to be more cautious. He recommended using a multi-signature enterprise-grade hardware wallet for transactions.
He warned that crypto firms should be extra diligent when hiring new team members. According to him, these hackers are trying to infiltrate crypto companies. There are times when applicants “can’t match their profile to their resume.”
Is North Korea in the eyes of America?
Cheong’s warning comes on the heels of the US Treasury Department’s revelation that North Korean hackers were behind the Ronin Bridge exploit that caused $625 million in damage. The crypto industry has already lost over $1 billion in the first quarter of 2022, reflecting the extent of the losses in the space this year.
The US government has also promised a $5 million reward for information that helps disrupt North Korea-backed cybercriminal activities.
In another development, a US court sentenced former Ethereum developer Virgil Griffiths to 5 years in prison for providing technical information on how North Korea could evade sanctions.
What did you think of this topic? Write to us and let us know!