North Korea (DPRK) state-affiliated hackers and threat actors were responsible for more than $2 billion in crypto losses in 2025, a 51% year-over-year increase, despite fewer attacks carried out by the group, according to cybersecurity company CrowdStrike.

DPRK hackers represent the “largest” threat group targeting cryptocurrency users, as measured by the dollar amount of assets stolen, according to the company’s 2026 Financial Services Threat Landscape report. Crowdstrike added:

“Stolen proceeds are almost certainly laundered to fund the regime’s military programs. Compared to 2024, DPRK-nexus adversaries conducted fewer campaigns but achieved significantly higher returns by prioritizing high-value targets.”

The DPRK hackers and scammers focused on targeting Web3 projects and cryptocurrency exchanges because the stolen funds could be “cashed out” and transferred with a greater degree of anonymity than in the traditional financial system, CrowdStrike said.

The countries most targeted by DPRK hackers. Source: CrowdStrike

The report highlights the growing threat of state-affiliated hacking groups targeting cryptocurrency users and industry companies through cybersecurity threats and social engineering scams designed to steal funds and sensitive information.

Related: US sentences ‘laptop farmers’ tied to North Korean IT worker scheme

North Korean hackers infiltrate crypto projects online and offline

In April, the Ethereum Foundation, the organization that oversees development of the Ethereum ecosystem, identified 100 DPRK-backed hackers and threat actors who infiltrated crypto projects. 

Typically, these threat actors are remote hires; however, in April 2025, the Drift Protocol decentralized crypto exchange was infiltrated and compromised by DPRK-affiliated technology workers, who met with the Drift Protocol development team.

The Drift Protocol team said that they met the threat actors during a “major” cryptocurrency industry conference and built a working relationship with them over six months.

Source: Drift Protocol

During the collaboration, the hackers deployed malware, which compromised Drift Protocol developer machines and caused $280 million in losses. 

“It is important to note that the individuals who appeared in person were not North Korean nationals,” the Drift team said, adding, “DPRK threat actors operating at this level are known to deploy third-party intermediaries to conduct face-to-face relationship-building.”

During that same month, Onchain sleuth ZachXBT also documented a group of North Korean information technology (IT) workers who were making $1 million per month working at technology companies.

Magazine: North Korea denies crypto hacks, Upbit’s bank tests Ripple: Asia Express

TLDR

• The Senate Banking Committee advanced the Clarity Act in a 15-9 vote with two Democrats joining Republicans.
• The bill would split crypto oversight between the SEC and the CFTC and set rules for exchanges and brokers.
• Lawmakers rejected several Democratic amendments related to sanctions, ethics, and anti-money laundering measures.
• A DeFi safe harbor amendment passed 18-6 after support from a bloc of Democrats and Republicans.
• The Clarity Act will merge with the Agriculture Committee version before heading to the full Senate.

The Senate Banking Committee approved the Digital Asset Market Clarity Act in a 15-9 vote on Thursday. Sens. Ruben Gallego and Angela Alsobrooks joined 13 Republicans to move the bill forward. The measure now heads toward a merger with the Senate Agriculture Committee text before a floor vote.

Clarity Act Clears Committee With Bipartisan Support

Lawmakers advanced the Clarity Act after months of cross-party negotiations and revisions. Chair Tim Scott said the bill ends a “regulatory gray zone” for crypto firms. He added that the framework would protect consumers and keep innovation in the United States.

Sen. Cynthia Lummis called the proposal “the hardest piece of legislation” of her career. She said the bill fits new digital assets into an older regulatory system. The text splits oversight between the SEC and the CFTC and sets rules for exchanges, brokers, and custodians.

The committee rejected several Democratic amendments during the markup session. Sen. Elizabeth Warren opposed the bill and called it “a bill written by the crypto industry.” She argued that the draft weakens securities law protections that date to 1929.

Warren also warned that the bill allows banks to increase crypto exposure. She linked that risk to practices before the 2008 financial crisis. Republicans voted down her amendments in 11-13 votes.

Ethics, Sanctions, and DeFi Debates Shape Vote

Democrats raised concerns about illicit finance and stablecoins during the hearing. Sen. Jack Reed said Iranian actors use stablecoins to buy drone components. He sought authority for regulators to block foreign illicit stablecoin flows, but the amendment failed.

Sen. Chris Van Hollen cited estimates that over $150 billion moved through illicit wallets last year. He proposed penalties for releasing DeFi protocols designed for money laundering. Republicans rejected his measure and said current criminal laws already cover such conduct.

Ethics issues tied to President Donald Trump also shaped debate. Van Hollen proposed barring elected officials from crypto business ties. Sen. Bernie Moreno opposed the amendment and said it belonged in the Judiciary Committee, and the panel defeated it 11-13.

A key vote came on Lummis Amendment 122 regarding DeFi safe harbors. The committee adopted the amendment 18-6 after a technical revision. Warner, Cortez Masto, and Alsobrooks joined Republicans to support the compromise language.

Earlier, Chair Scott limited the number of amendments under committee rules. He later reinstated selected proposals to secure bipartisan backing. By the final vote, Gallego and Alsobrooks provided the Democratic support needed for the 15-9 outcome.

The company said the program is designed to promote institutional yield generation and cross-chain returns for a wider range of users through stablecoin-based lending and liquidity strategies.

TownSquare announced the launch of a $100 million liquidity program tied to the USD1 stablecoin as the decentralized finance platform seeks to expand institutional yield opportunities and cross-chain lending infrastructure. According to reports from ChainCatcher, the initiative will use USD1, the stablecoin developed by World Liberty Financial, to provide broader access to institutional-grade DeFi strategies.

TownSquare focuses on institutional yield infrastructure and brokerage services spanning multiple blockchain ecosystems.

The announcement follows TownSquare’s earlier collaboration with the World Liberty Financial DeFi team to introduce the USD1 token to the high-performance EVM blockchain Monad. The project also received incentives from the Monad Foundation as part of that integration effort.

Institutional DeFi competition accelerates

TownSquare said the new liquidity initiative reflects its long-term commitment to expanding decentralized finance adoption and bringing institutional trading and yield strategies to additional blockchain ecosystems. The company’s platform has already launched cross-chain lending functionality, while a dedicated yield-generating product remains in development.

According to official project information, TownSquare previously secured backing from major crypto-focused investors and ecosystem participants including Andreessen Horowitz, Monad, Aptos, and Solana-linked Bonk contributors, alongside several European and U.S.-based venture capital firms and angel investors.

The project’s team reportedly includes former employees from Coinbase, Meta, and Accenture, as well as market-making firms involved in crypto liquidity infrastructure.

The launch comes amid rising competition among stablecoin issuers and DeFi protocols seeking to attract institutional capital. In a previous crypto.news story, Circle expanded its partnership with Hyperliquid to strengthen USDC’s role in decentralized trading and cross-chain liquidity.

Institutional demand for blockchain-based yield products has also accelerated alongside the growth of tokenized assets and stablecoin markets. Another crypto.news story detailed Grove’s launch of a $1 billion liquidity network supporting tokenized Treasury funds including BlackRock’s BUIDL product.

As DeFi platforms increasingly compete for institutional users, TownSquare’s USD1 liquidity initiative signals growing efforts to merge traditional yield strategies with on-chain lending and stablecoin infrastructure.