North Korea based hackers have reportedly carried out another attack, stealing hundreds of millions in crypto in order to fund their regime’s ‘nuclear weapon program.’
According to blockchain intelligence company TRM Labs, almost 20% of all cryptocurrency stolen this year, equivalent to $200 millions in US Dollars, has been taken by hackers connected to North Korea between January and August 18.
The TRM Labs, in a discussion with North Korea experts, in June, stated, “In recent years, there has been a marked rise in the size and scale of cyberattacks against cryptocurrency-related businesses by North Korea. This has coincided with an apparent acceleration in the country’s nuclear and ballistic missile programs,”
In the aforementioned discussion, TRM Labs also emphasized the way there has been a shift away from North Korea's "traditional revenue-generating activities" — a sign that the government may be "increasingly turning to cyber attacks to fund its weapons proliferation activity."
In another comment on the issue, blockchain analytics firm Chainalysis noted in their February issue that “most experts agree the North Korean government is using these stolen assets to fund its nuclear weapons programs.”
On the other hand, CNBC's request for a comment on the matter from the North Korean regime's diplomatic mission to the UN – the Permanent Mission of North Korea in New York – was denied.
The Democratic People's Republic of Korea, or North Korea officially known as the DPRK, has been subject to numerous sanctions by the UN since its first nuclear test in 2006, owing to its development of nuclear and ballistic missile technology.
The goal of these sanctions behind bans on North Korea’s financial services, minerals, metals and artillery is to limit Korea’s access to these sources and funds it will need to execute their nuclear activities.
The FBI only recently alerted cryptocurrency firms that hackers with ties to North Korea intend to "cash out" $40 million in cryptocurrency.
In January, the federal agency also noted that it continues to “identify and disrupt North Korea’s theft and laundering of virtual currency, which is used to support North Korea’s ballistic missile and Weapons of Mass Destruction programs.”
In regards to the issue, intelligence analyst at blockchain analytics firm TRM Labs Nick Carlsen said, “They are under pretty serious economic stress with international sanctions. They need every dollar they can. And this is just obviously a much more efficient way for North Korea to make money.”
“Even if that dollar stolen in crypto doesn’t directly go towards the purchase of some component for the nuclear program, it frees up another dollar to support the regime and its programs,” he added.