North Korea has systematically turned to large-scale cryptocurrency thefts to evade isolation and finance its weapons of mass destruction. A United Nations panel estimated that digital heists account for half of the regime's incoming foreign currency, bringing in billions through dozens of targeted breaches. Recent major exploits linked to the elite Lazarus Group include multi-billion-dollar thefts from prominent exchanges such as Binance and Bybit. These proceeds prop up the authoritarian government's military priorities while roughly 40% of its civilian population experiences undernourishment.
Key points
Cryptocurrency thefts now account for an estimated half of North Korea's total foreign cu…: Cryptocurrency thefts now account for an estimated half of North Korea's total foreign currency revenue.
One nation estimates that digital asset breaches directly finance 40% of the regime's wea…: One nation estimates that digital asset breaches directly finance 40% of the regime's weapons of mass destruction programs.
North Korea prioritizes foreign military funding through cybercrime while nearly one in f…: North Korea prioritizes foreign military funding through cybercrime while nearly one in five of its children suffers from stunting.
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North Korea plays by its own rules. The isolated, secretive and autocratic country is largely cut off from the world’s economic system – but when it comes to generating foreign earnings it relies on some of the world’s most sophisticated hacking.
Experts, such as TRM Labs, quickly attributed the extraordinary $6.3bn (£4.7bn) Binance cryptocurrency theft to TraderTraitor, an elite North Korean hacking unit that has also been known as the Lazarus Group. Though the link may not be proven yet, the pattern of behaviour is familiar.
North Korea has a history of cryptocurrency theft dating back to 2017, focusing on the sector’s relatively lax security controls as a way of stealing money and generating revenues for its military, including its nuclear weapons programme.
Kim Jong-un, its dictatorial ruler, controls a stockpile of about 50 nuclear warheads, and has been supplying troops and weapons to help Russia in its war in Ukraine. But North Korea is also extremely poor: 40% of the population are undernourished according to the UN and nearly one in five of its children are stunted.
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