North Korean hackers turn to AI as DPRK drives 66% of crypto hack losses

North Korean hackers are turning to artificial intelligence to expand their cyber operations, adding a new layer of sophistication to a threat that already accounts for most cryptocurrency hacking losses worldwide.

North Korea-linked hacking groups were responsible for roughly $643 million in stolen cryptocurrency during the first half of 2026, or 66% of all crypto hacking losses globally, according to blockchain intelligence firm TRM Labs.

The figure highlights the rising dominance of DPRK-linked actors in an industry that suffered $972 million in losses from 207 hacking incidents during the period.

The development comes as cybersecurity researchers have found that Kimsuky, a cyber threat group tied to North Korea’s Reconnaissance General Bureau, is weaponizing generative AI to support their hacking campaigns. A new report from South Korean cybersecurity firm Genians found that the group has deployed AI tools and large language model platforms, including Ollama, GPT4All, and Msty, alongside retrieval-augmented generation technology.

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