North Korea has dramatically increased its focus on the crypto industry since 2017, stealing more than $3 billion in digital assets, according to cybersecurity firm Recorded Future.
The company says the North Korean regime has a “highly skilled cadre of computer scientists” with privileged access to new technology and information.
State support will allow the country’s hacking campaigns to scale beyond regular cybercrime operations, the company says.
Of the $3 billion worth of crypto stolen by the regime, $1.7 billion was captured in 2022 alone, accounting for 44% of all crypto stolen that year.
Recorded Future says these funds could have financed 50% of North Korea’s ballistic missile programs.
In total, the company says the funds the country collects from its crypto thefts are equivalent to 5% of its total economy. The money, which is often laundered in the same way as traditional cybercriminal groups, ensures that the regime can continue to operate despite international sanctions.
Says the company,
“The regime views cryptocurrency theft as a major source of revenue, especially to finance military and weapons programs. While the exact amount used for ballistic missile launches is unclear, both the number of stolen cryptocurrency and missile launches have increased.
Without stricter regulations, cybersecurity measures, and investments in cybersecurity for cryptocurrency companies, North Korea will likely persist in targeting the industry for additional revenue. Despite restrictions on freedom of movement and the isolation of the general population, the regime’s elite and highly trained computer scientists with privileged access to technology play a crucial role in carrying out cyber attacks against the cryptocurrency industry.”
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Featured image: Shutterstock/pedrosek