South Korea and the United States are collaborating on a joint research initiative to build up protection against the theft of cryptocurrency assets through hacks carried out allegedly by hackers from North Korea, the rogue state. North Korea backed Lazarus Group of hackers was allegedly behind some of the biggest hacks of 2024 including the WazirX hack.
As per details, the U.S. Department of Homeland Security and the South Korean government have signed an agreement to develop technologies designed to prevent attacks on cryptocurrency platforms and infrastructure, as well as to track stolen digital assets. The research will also explore methods for tracking stolen digital assets and laundering stolen funds and will particularly focus on how they are converted to cryptocurrencies.
The collaboration plans to support research through the Institute of Information and Communications Technology Planning and Evaluation until 2026. South Korea’s concerns arise from its closeness to North Korea, which is recognized as a major player in cryptocurrency crimes and thefts. Hackers linked to North Korea are estimated to have stolen $1.34 billion worth of cryptocurrency across 47 separate incidents this year. Reports indicate that the hacker group known as the ‘Lazarus Group’ is believed to have stolen $900 million in the year 2024, according to the U.S. government.
It has been reported that this year, the decentralized exchange Hyperliquid was hacked by the Lazarus Group from North Korea. North Korea is believed to use tools such as ‘Tornado Cash’ to hide the origins of stolen funds, which are thought to finance the country’s nuclear and missile programs.
The US Treasury Department has stated that Tornado Cash facilitates illegal activities, like money laundering by groups similar to Lazarus Group. However, the Court of Appeals found that the smart contracts of Tornado Cash do not constitute property owned by any foreign national.
Also Read: Exclusive: Are these North Korean Hackers behind WazirX Hack?
