North Korea's Billion-Dollar Digital Heist: How Crypto Theft Fuels Weapons

Theft and Money Laundering

North Korea has stolen approximately $2.84 billion in cryptocurrency since early 2024. How did they do it?

• Hackers and IT workers targeted major crypto exchanges in the UAE, Japan, India, and Singapore.
• The stolen funds were laundered through networks in China, Russia, Hong Kong, and Cambodia.
• Chinese individuals provided fake IDs and payment system access, making the money trail harder to track.

Why Do They Do It?

North Korea is under international sanctions, making it difficult to access funds legally. Cybercrime has become a major revenue stream, funding weapons and research programs.

IT Workers Abroad

• North Korea has IT workers abroad earning $350 million to $800 million in 2024.
• Half of these earnings are sent back to North Korea.
• These workers operate in China, Russia, Laos, Cambodia, and some African nations, working on AI, blockchain, and web development.
• They use fake identities to secure jobs, and their earnings also support military efforts.

Global Efforts to Stop the Illicit Activities

A group of 11 countries, including South Korea, the US, and Japan, formed the Multilateral Sanctions Monitoring Team (MSMT).

• They track North Korea's cyber activities and sanctions evasion.
• They call for better coordination among financial regulators to block illegal transactions.
• They also monitor foreign IT contracts that may benefit North Korea.