The North Korean Regime’s Cyber-Attacks on Cryptocurrency
According to a US diplomat, the North Korean regime generates approximately half of its foreign-currency income through cyber-attacks on cryptocurrency and other targets. The Biden administration official revealed that these attacks have increased significantly since 2018, aligning with the country’s nuclear and missile programs.
Concerns Over Funding Source
The official expressed concerns about the significant role of cryptocurrency heists and cyber-attacks in funding the regime in Pyongyang. Reportedly, about 50% of North Korea’s foreign-currency earnings are derived from cyber theft. To address this issue, the US is actively working with South Korean allies and other partners worldwide to counter these activities and raise awareness among companies to prevent such attacks.
Operatives and Tactics
South Korean estimates suggest that North Korea employs approximately 10,000 operatives to carry out financially motivated cyber-attacks. Additionally, thousands of IT workers are deployed abroad under false identities as freelancers in developed economies to support the regime’s cyber campaigns.
Notable Cyber-Attacks
North Korean hackers have been linked to some of the most significant cryptocurrency heists in recent years. These include the $620 million stolen from Sky Mavis’ Ronin Network and the $281 million taken from KuCoin. The attackers are continuously evolving their techniques, as seen in the 3CX supply chain attacks where malware was inserted into a legitimate software update to target crypto exchanges.
UN Estimates and Global Impact
In 2019, the UN estimated that North Korea had accumulated up to $2 billion from past cyber-attacks on cryptocurrency firms and traditional banks. These illicit activities not only pose a financial threat but also highlight the regime’s growing sophistication in cyber warfare.
As the North Korean regime continues to rely on cyber-attacks for funding, international cooperation and heightened cybersecurity measures are essential to combat this ongoing threat.