North Korea is now using locally hosted artificial intelligence to carry out cyberattacks against the cryptocurrency sector, according to a report from South Korean cybersecurity firm Genians Security Center. The Kimsuky group leverages these tools to sort through stolen data and identify sensitive information such as wallet recovery phrases or passwords. These AI systems are also used to create fake financial documents embedded with malware to gain access to victims’ computers. The exploitation of a vulnerability present since 2021 in ColdCard hardware wallets resulted in the theft of 1,433.13 BTC from 5,477 addresses between July 30 and August 2, 2026, a flaw that could have been detected by AI models.
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