The National Security Advisors of the United States, South Korea, and Japan recently convened to address the challenge posed by North Korea’s illicit use of cryptocurrency to fund weapons of mass destruction programs (WMD). The trilateral meeting, held at the White House on Saturday, brought together Jake Sullivan, the U.S. National Security Advisor, Cho Tae-Yong from South Korea, and Takeo Akiba from Japan.
Key topics of discussion included trilateral collaboration on economic security and the concerning issues related to North Korea, such as its involvement in cryptocurrency thefts and the continuation of its WMD program. The National Security Advisors assessed the progress of various trilateral initiatives, emphasizing collective efforts aimed at responding to North Korea’s utilization of cryptocurrency as a means to generate revenue for its illicit WMD programs.
International Communities Monitor North Korea’s Crypto Activities
According to a recent report from TRM Labs, hackers linked to North Korea managed to pilfer a staggering $200 million in cryptocurrencies between January and August 2023. This significant breach constituted more than 20% of the total value of crypto thefts recorded throughout the year.
The report highlights a concerning trend of escalating cyber-attacks directed at businesses associated with cryptocurrencies by North Korea. Additionally, it suggests a growing likelihood that the regime is resorting to cryptocurrencies as a means to finance its weapons proliferation endeavors.
The report drew attention to the correlation between the surge in cryptocurrency-related cyber-attacks by North Korea and an apparent acceleration in the nation’s nuclear and ballistic missile programs.
In a February report, the blockchain analytics company Chainalysis asserted that “most experts agree the North Korean government is using these stolen assets to fund its nuclear weapons programs.” This observation underscores the belief within the expert community regarding the connection between North Korea’s illicit acquisition of digital assets and the financing of its nuclear weapons initiatives.
The international community has intensified its scrutiny of North Korea’s activities in the cryptocurrency space. Notably, the United States accused the notorious North Korean hacking entity, Lazarus Group, of purloining over $600 million from Axie Infinity’s Ronin Bridge in 2022.
In response to such cyber threats, the U.S. Treasury Department took action by imposing new sanctions targeting North Korea’s cyber activities. This included the addition of the ‘Sinbad’ mixer, a tool used for cryptocurrency laundering, to the Office of Foreign Assets Control’s (OFAC) specially designated sanctions list.
