North Korea's Cryptocurrency Theft Fuels Nuclear Ambitions

Recent reports indicate that North Korea continues to fund its nuclear and missile programs through the theft of cryptocurrency. Seth Bailey, U.S. Deputy Special Representative for North Korea, highlighted this issue during the 'ROK-U.S. Joint Public-Private Symposium on Blocking North Korea's Virtual Asset Laundering' held at the Hilton Midtown Hotel in New York on August 27.

Bailey cited a report from blockchain research firm TRM Labs, stating that an estimated one-third of the global cryptocurrency theft in the past year was carried out by North Korean hackers. He warned that the amount of theft is expected to increase further this year.

According to TRM Labs, the amount of cryptocurrency stolen through hacking in the first half of this year reached $1.38 billion, doubling from $657 million during the same period last year. Bailey noted that cryptocurrency theft is a relatively new source of income for North Korea, with over 40 percent of the funding for North Korea's weapons of mass destruction (WMD) and ballistic missile development programs sourced through cryptocurrency channels.

Bailey emphasized ongoing efforts to work closely with like-minded countries, including South Korea and Japan, to develop government policies and procedures that directly impact and limit North Korea's actions. Lee Jun-il, Director General for North Korean Nuclear Affairs at the Ministry of Foreign Affairs, also spoke at the symposium, highlighting the joint efforts between South Korea and the United States to respond to North Korea's cyber threats.