North Korea has reportedly stolen millions of dollars of cryptocurrencies to fund its missile program.
Funds Stolen By North Korea
According to a leaked UN report as seen by Reuters, North Korea’s weapons program is being heavily funded by crypto stolen through cyberattacks between 2020 and mid-2021. Experts from the UN have said,
“Cyber-actors stole more than 50 million dollars (£37 million) between 2020 and mid-2021 from at least three cryptocurrency exchanges in North America, Europe, and Asia, probably reflecting a shift to diversify its cybercrime operations”.
The UN experts mainly cited a Chainalysis report from last month that stated that North Korea had siphoned off around $400 million worth of digital assets in just 2021 through cyber attacks.
NK’s Dreaded Nuclear Program
The report also pointed out the marked increase in missile testing and other similar nuclear weapons-related activity in North Korea. In addition, the report summarized that North Korea has continued channeling these stolen funds in developing its nuclear and ballistic missile program.
In fact, multiple sources have reported that the country conducted nine ballistic missile launches in January 2022 alone, which is the highest number of launches in a single month in the history of the country’s weapons program. The UN has imposed sanctions on North Korea since 2006 to curb its nuclear and ballistic missile program.
UN Reports On North Korean Cybercriminals
A UN panel of experts who are monitoring sanctions on North Korea reported the process of how the country is stealing crypto funds for its nuclear program. As per their report, these cyberattacks conducted by North Korean hackers consisted of phishing lures, code exploits, malware, and advanced social engineering. The malicious actors mainly targeted cryptocurrency exchanges, attacking their ‘hot’ wallets that were connected to the internet. The funds are then siphoned off into addresses controlled by the Democratic People’s Republic of Korea (DPRK). These funds are then put through elaborate and careful money laundering processes to erase the trail before being cashed out and channeled into the missile program.
According to the panel’s reports from a year ago, an unidentified country had stated that North Korea had stolen virtual assets worth approximately 316.4 million dollars from 2019 to November 2020. In addition, certain South Korean media outlets had reported at the end of last year that North Korean hackers had stolen $1.7 billion worth of cryptocurrencies from exchanges, as a part of a ‘long term’ haul instead of a short-term cash flow.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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