North Korea faces South Korean sanctions targeting crypto hackers and IT operatives

South Korea has imposed sanctions on North Korean crypto hackers and IT workers to prevent the country from funding its weapon programs through cybercrime.  

South Korea’s sanctions

South Korea imposed sanctions on North Korea due to crypto hackers and IT workers. These sanctions are to stop North Korea from using illegal online activities to fund its nuclear weapons and missiles. South Korea and its allies are intensifying their efforts to prevent North Korea from making illegal money through digital currencies and IT work.

South Korea has identified Bureau 313, a cyber unit under North Korea’s Ministry of National Defense, which is part of the Workers’ Party of Korea’s Machine-Building Industry Department.

Data from Chainalysis shows that in 2024 alone, North Korean hackers stole $1.34 billion in cryptocurrencies, over 60% of all crypto thefts globally this year.

These stolen funds are to directly support North Korea’s weapons programs, which cover about 40% of the costs of developing weapons of mass destruction.

South Korea’s sanctions target about 15 individuals and one organization linked to Bureau 313. These people are mostly IT experts who use their skills to infiltrate international IT markets.

North Korea on hacks

North Korean hackers are believed to have carried out some of the biggest cryptocurrency thefts. The FBI recently revealed that North Korea was behind the $308 million stolen from the Japan-based crypto company DMM Bitcoin, which caused it to shut down.

Additionally, last week, the U.S. Treasury Department imposed sanctions on two people and one company for helping North Korea launder stolen cryptocurrencies through a front company in the United Arab Emirates.

IT workers usually go to countries like China, Russia, Southeast Asia, and Africa by hiding from North Korea to get jobs with international companies. Once hired, they do illegal things like hacking, stealing cryptocurrencies, and hiding stolen money.

For example, Kim Cheol-min worked at IT companies in the U.S. and Canada and sent a lot of money back to North Korea.

It shows that North Korea doesn’t rely on hacking. They also have skilled IT workers who use fake identities to get real remote jobs and earn money from other countries.

The Lazarus Group, linked to the North Korean government, was behind major hacks, such as the $620 million theft from Axie Infinity’s Ronin Network in 2022.

Seeing the value of blockchain and digital money, South Korea has set strict rules to keep its crypto market safe. For instance, the country’s Virtual Asset Service Provider (VASP) system requires crypto exchanges to follow strict anti-money laundering rules and use real-name account systems.

These efforts are meant to stop North Korea from making illegal money and to make crypto safer.

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