North Korean hackers have found a new weapon, and it’s not quantum computing.
In 2025 alone, state-sponsored groups like the Lazarus Group stole more than $2 billion in cryptocurrencies, using artificial intelligence to enhance every stage of their operations. AI now scans thousands of smart contracts in minutes, identifies exploitable code, and automates multi-chain attacks previously limited to elite cyber teams.
Artificial intelligence is at the heart of modern cryptocurrency thefts
Bybit’s record-breaking $1.5 billion hack in February 2025 was a turning point. Investigators from Elliptic and TRM Labs say North Korean hackers used AI-based reconnaissance tools and deep recruiter profiles to infiltrate internal systems. Once inside, AI algorithms detected vulnerabilities, executed exploits, and routed the stolen funds through Tron-based mixers and over-the-counter brokers, covering their trace with near-machine precision.
Cybersecurity experts point out that AI now handles the entire attack lifecycle – from writing malicious code to creating phishing lures and managing money laundering pipelines. As one analyst at Mysten Labs said,
“Large linguistic models have made cybercrime scalable, and even small teams can now act like hackers on an industrial scale.”
Quantum computing is not the immediate threat
While quantum computing remains a long-term risk, there is no current system that can yet crack Bitcoin’s ECDSA encryption. Experts estimate that it will take a decade or more before quantum decryption becomes realistic. The immediate challenge, they say, is defending against adaptive AI models that evolve faster than traditional security protocols.
The industry is adapting to AI-driven threats
Exchanges and DeFi projects are now being urged to conduct ongoing AI-driven security audits that look for vulnerabilities as quickly as attackers do. Companies like Elliptic, Chainalogy, and Mandiant are incorporating AI-based monitoring to track suspicious money flows and detect AI-generated phishing campaigns.
Some blockchain projects, including Mysten Labs and Algorand, are already preparing to address quantum threats by developing quantum-resistant cryptography – ensuring long-term resiliency while addressing today’s AI risks.
Bottom line
As North Korean hackers weaponize artificial intelligence, the global cryptocurrency industry faces a new reality: machine-driven crime that learns, adapts, and expands at lightning speed. Defending against it will require using the same technology that made it possible: AI fighting AI.
Frequently asked questions
How is North Korea using artificial intelligence to hack cryptocurrencies?
State-backed hackers in North Korea, incl Lazarus Groupis used artificial intelligence To scan smart contracts, detect vulnerabilities, create phishing campaigns, and automate money laundering operations. AI tools can analyze thousands of blockchain codes in minutes, allowing hackers to launch faster and more accurate crypto attacks.
What is the Bybit cryptocurrency hack of 2025 and how did it happen?
The February 2025 Bybit hack, attributed to North Korea’s Lazarus Group, was the largest cryptocurrency theft in history, worth $1.5 billion. Hackers used AI-generated deepfake technology and automated exploit detection to compromise systems and launder stolen funds through Tron mixers and OTC brokers.
Why is artificial intelligence a bigger threat to cryptocurrency security than quantum computing?
Artificial intelligence poses an immediate danger because it enables real-time scanning, phishing, and automated attacks, while quantum computers capable of cracking blockchain encryption are still years away. AI-driven cybercrime is already scalable, making it the biggest concern for cryptocurrency platforms in 2025, experts say.
