North Korean threat actor Kimsuky has been setting up local AI environments using tools such as Ollama, GPT4All, and Msty to enhance its cyberattack capabilities against the cryptocurrency sector. Researchers discovered that the group is collecting libraries and frameworks to integrate AI into malware, including LLaMaSharp and Microsoft Semantic Kernel. According to Blockaid’s findings, North Korea-linked attackers were responsible for more than half of the cryptocurrency stolen in the first half of 2026, with approximately $609 million diverted out of a total of $1.1 billion. Attacks on KelpDAO and Drift Protocol, attributed to the TraderTraitor group associated with Lazarus, account for most of these losses, while the Humanity Protocol operation suffered a $32 million theft.
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