According to four digital investigators, the recent crypto market plunge has destroyed millions of dollars in assets that North Korean hackers had stolen, threatening a crucial source of income for the sanction-hit nation and its weapons programmes.
On a recent visit to South Korea, Brian E. Nelson of the U.S. Treasury Department claimed that North Korea exploits cryptocurrency hacking to finance the development of nuclear and other weapons of mass devastation.
Nelson spoke about digital assets, cybersecurity, and anti-money laundering during a meeting on Tuesday with the Financial Services Commission (FSC) and Financial Intelligence Unit (KoFIU) of South Korea.
According to local media, the Treasury’s Under Secretary for Terrorism and Financial Intelligence addressed potential ways to work together on sanctions against North Korea.
The Federal Bureau of Investigation (FBI) and the Treasury both accused the rogue state of North Korea for carrying out the largest crypto attack. Axie Infinity, a popular play-to-earn game which runs on the Ethereum sidechain Ronin, saw over US$620 million in cryptocurrency theft in March of this year.
According to blockchain analysis company Chainalysis, the state-sponsored North Korean hacker organization Lazarus purportedly stole digital assets last year valued roughly $400 million USD.
As per a report by Reuters, which cited a United Nations study, the nation’s nuclear and ballistic missile programmes are funded through hacks on cryptocurrency.
A guy, who would only identify himself as an embassy official, stated, “We didn’t do anything.” The foreign ministry of North Korea has referred to these accusations as American propaganda.
According to the U.S. Treasury, North Korea has invested significant resources in cryptocurrency theft in recent years, making it a strong cyber threat and resulting in one of the greatest cryptocurrency heists on record in March, in which over $615 million was stolen.
Recently, two US agencies advised against North Korea’s Lazarus hacking group as attacks targeting the cryptocurrency and blockchain industries continue to rise.
