YEREVAN (CoinChapter.com) — Kim Jong Un is perhaps a bigger crypto fan than Elon Musk. The North Korea’s dictator is, after all, running a global cybercrime racket called Lazarus Group, which has stolen over $255 million in cryptocurrencies so far in 2023.
The stolen amount includes nearly $55 million that its hackers recently stole from crypto exchange CoinEx.
Lazarus’s Crypto Theft Addresses Linked to Other Crimes
On-chain investigators SlowMist and ZachXBT tracked the stolen funds to what appears to be Lazarus’s crypto addresses, which, interestingly, have connections with the $41 million hack of the crypto gambling platform Stake.
In addition, some addresses involved with the CoinEx hack exploited payment processing platform Alphapho in July 2023. Simply put, Kim Jong Un’s cyber criminals have been openly leaving traces of their wrongdoings — a “do whatever you want to do” challenge in the face of online police.
Exploits, hacks, and scams within the crypto space have led to significant losses, with the recent attack on CoinEx Global contributing to the mounting figures. As of August 2023, cybersecurity firm CertiK reported that nearly $1 billion had been lost due to such incidents since January.
In August alone, malicious attacks resulted in approximately $45 million in theft.
Future Outlook of Kim Jong Un’s Crypto Theft Empire
Despite long-standing sanctions and COVID-19 restrictions, North Korea still seeks cryptocurrency through cybercrime. This has become a highly profitable venture, bringing in hundreds of millions. The nation’s cyber abilities continue to grow.
Catching North Korean cyber criminals is challenging because the country doesn’t hand over its citizens to face US charges.
Recent events, like a North Korean individual being sent from Malaysia to the US for money laundering in March 2021, show more states are willing to fight cyber crimes. Governments are also taking direct steps to stop cryptocurrency exchanges.
For example, the US Treasury has put sanctions on an exchange that helps with ransomware payments. China’s recent ban on all crypto transactions will likely disrupt North Korean operations there.
Even with changing rules, North Korea will likely keep up its illegal crypto activities. They network and work with countries like Russia, Iran, and India. North Korea might talk with specific exchanges, banks, or regulators to keep the money flowing from cryptocurrency theft.
They might offer protection from cyber attacks in exchange for help. As rules shift, the regime will adjust by strengthening existing networks and making new alliances to fund its Weapons of Mass Destruction program.
Conclusion
North Korea’s crypto operations match its goals and will likely keep going. As sanctions get tougher, crypto operations are a steady way to fund its WMD program.
North Korea’s cryptocurrency work is a model for isolated places, offering another way to get money. Iran, Venezuela, and Russia have had success with crypto activities. This could encourage others to try it for funding.
Governments should work with law enforcement, groups, and non-traditional players to develop new plans to deal with the national security risk from North Korea’s crypto operations. Regular steps like sanctions aren’t enough to stop the regime’s crypto fraud and illegal activities.
