In Brief:
- Reportedly, Pyongyang’s nuclear and ballistic missile programs are funded by cyberattacks by the DPRK.
- Cyberattacks used codes, malware, and social engineering into luring and siphoning funds out of crypto exchanges.
- The country has focused on exchanges in North America, Europe & Asia.
According to UN reports, North Korea is stealing hundreds of millions of dollars from financial institutions and cryptocurrency firms and exchanges, illicit money that is an important source of funding for its nuclear and missile programs.
Investigators discovered that between 2020 and mid-2021, cyber-attackers stole more than $50 million (£37 million) in digital assets, contemplating that such attacks are an “important revenue source” for Pyongyang’s nuclear and ballistic missile programs.
At least three cryptocurrency exchanges in North America, Europe, and Asia were targeted in the cyber-attacks using phishing lures, code exploits, malware, and advanced social engineering to take funds out of these organizations’ internet-connected ‘hot’ wallets and into DPRK (Democratic People’s Republic of Korea) controlled addresses.
The cryptocurrency funds stolen by DPRK cyber actors are carefully laundered before being cashed out, the panel of UN experts explained.
The report also referenced a study published last month by Chainalysis that suggested North Korean cyberattacks could have stashed as much as $400m worth of digital assets last year.
The UN Security Council has prohibited North Korea from conducting nuclear tests or launching ballistic missiles but North Korea has been able to continue developing its nuclear and ballistic missile infrastructure despite crippling sanctions.
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