- South Korea imposes sanctions on North Korea’s 313 Bureau, accused of stealing $1.3B in crypto for weapons programs.
- North Korea’s cyber unit behind 60% of global crypto thefts in 2024, fueling nuclear and missile developments.
- US and South Korea collaborate to combat crypto thefts, with plans for new tech to trace and prevent North Korea’s cybercrime.
South Korea has decided to impose sanctions on North Korea’s 313 Bureau, a cyber unit accused of hacking and stealing cryptocurrencies. The sanctions announced publicly on December 26, point to the 313 Bureau which is under North Korea’s Ministry of National Defense. It has been associated with several cybercrimes where the target has been to steal virtual currencies globally.
North Korea’s Crypto Theft Surge
According to the US-based blockchain analysis firm Chainalysis, North Korea was behind more than 60% of global crypto thefts in 2024 with the country netting a record $1.3b in digital assets. South Korean officials say that the money is being funneled into North Korean weapons programs, including ballistic missiles and nuclear weapons. The most recent measures to put sanctions are in support of other efforts aimed at restricting the country’s capability to support such activities through hacking.
The sanctions also affect 15 North Korean IT officials and one institution engaged in the generation of foreign currency incomes including the 313 Bureau. The countries involved in these activities include China, Russia, the countries in the Southeast Asia and Africa, where these individuals are said to be involved in activities that support the regime’s military objectives. According to South Korea’s Ministry of Foreign Affairs, these people are using online platforms to make money and the money they make is then used by North Korea for its nuclear programme.
Joint Effort to Combat Crypto Theft
This announcement comes just days after it was disclosed that the US and South Korea are planning to team up to fight off North Korea-linked crypto theft. According to reports, both the countries have entered into an agreement to come up with new technologies to curb out the crypto thefts and track stolen virtual currencies.
This project will be implemented by Korean and Japanese researchers including Korea University and RAND Corporation until 2026. The initiative will focus on the detection of ransomware attacks and the subsequent flow of the stolen cryptocurrency into other cryptocurrencies to make it almost impossible to detect and recover.
This comes after there has been a rise in cyber thefts that can be traced to North Korea. As the number of digital currencies involved in criminal activities grows, the experts insisted on international measures to safeguard the international financial system. This is in the same light of the measures that the South Korean government has been implementing in the course of combating cyber-crime incidents supported by other states.
Sanctions applied to the 313 Bureau and other North Korean bodies are a clear example of the potential of the risk, especially as the use of digital assets is gradually increasing. The increasing use of digital assets worldwide makes it even more important to be worried about the darker side that criminals and rogue states will use digital fund their operations. The actions that the international community is taking in responding to these challenges will greatly influence the future of the security of the crypto market and of the global financial system.
