North Korean Hackers Weaponize AI: A New $2 Billion Threat to the Crypto Sector
North Korean-backed hacker group Kimsuky is creating a next-generation threat targeting the cryptocurrency and financial sectors by integrating artificial intelligence tools into its cyberattacks.
A new report published by South Korean cybersecurity firm Genians has revealed that the North Korean state-linked hacker group Kimsuky has modernized its operations. Supported by North Korea’s official agencies, this group has actively begun using local artificial intelligence systems to specifically target cryptocurrency exchanges and financial institutions.
According to the report, Kimsuky is increasing its attack capacity by using local large language models (LLMs) such as Ollama, GPT4All, and Msty. The primary advantage of these tools is their ability to work offline without an internet connection, allowing them to perform complex queries without leaking data externally. Hackers are using this technology not only for drafting text but also for malware development, data analysis, and automating attack processes.
The AI Threat to Cryptocurrency Investors
Kimsuky’s strategy includes producing highly professional-looking phishing documents themed around investment strategies and digital assets. According to Chainalysis data, North Korean hackers stole a total of $2.02 billion worth of cryptocurrency last year. This staggering figure includes the $1.5 billion attack on the Bybit exchange. Furthermore, it is believed that the recent $100 million vulnerability in Coldcard hardware wallets stemmed from a security flaw discovered by AI.
NEAR Protocol co-founder Illia Polosukhin emphasizes that AI grants hackers the ability to find software vulnerabilities much faster than traditional security measures. This state-sponsored technological move by North Korea proves that cybercrime has evolved from individual attempts into a corporate and AI-powered structure. Investors must be more vigilant than ever, especially against fake documents and complex attack methods perfectly crafted by AI.