North Korea Allegedly Utilizes $2.8 Billion in Stolen Crypto for Military Funding

North Korea has reportedly amassed at least $2.8 billion in cryptocurrency through state-sponsored hacking activities, according to CoinMarketCap. This substantial sum is alleged to significantly contribute to the nation’s military funding, representing nearly a third of its foreign currency earnings.

State-Backed Cyber Operations

The notorious Lazarus Group, a North Korean state-backed hacking organization, is believed to be at the forefront of these cyber operations. Utilizing advanced techniques such as supply-chain and social-engineering attacks, these groups have targeted cryptocurrency exchanges and custody providers to procure digital assets.

Laundering Stolen Crypto

Once acquired, the stolen cryptocurrencies are laundered through a variety of methods. Techniques include the use of mixers, cross-chain bridges, and Chinese over-the-counter (OTC) brokers, which help convert the digital currency into fiat money. This process is crucial for funneling funds into the country’s weapons and missile programs, thereby circumventing traditional international sanctions.

International Concerns

The international community has expressed significant concern over North Korea’s cyber activities and their implications for global security. The reliance on stolen digital currencies as a stable source of income underscores the challenges in enforcing financial sanctions and regulating the cryptocurrency space.

In an October 22 report by the Multilateral Sanctions Monitoring Team, it was highlighted that these illicit activities provide a steady cash flow that remains largely immune to global sanctions efforts. The report emphasizes the need for enhanced international cooperation to combat such cyber threats effectively.

For more details, visit the CoinMarketCap.

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