South Korea and US Team Up to Fight North Korea Crypto Theft

South Korea and US Unite to Counter Cryptocurrency Heists

South Korea and the United States have partnered to enhance security measures against cryptocurrency theft, focusing particularly on the growing threats linked to North Korean hackers.

This collaboration comes as North Korea remains a prominent actor in virtual asset crimes, reportedly responsible for $1.34 billion worth of stolen cryptocurrency in 47 incidents this year, according to Chainalysis.

Joint Research to Strengthen Defences

A recently signed technical annex between South Korea's government and the U.S. Department of Homeland Security sets the framework for joint development of technologies to combat cryptocurrency theft and recover stolen assets.

The initiative will be supported by South Korea's Science Ministry through the Institute of Information & Communications Technology Planning & Evaluation, with research efforts expected to continue until 2026.

Focus on Tracking and Prevention Technologies

The programme will see collaboration between researchers from Korea University, the RAND Corporation, and other key institutions.

Their efforts will centre on advanced methods to track stolen assets and identify how hackers convert traditional financial gains into cryptocurrency, often through illegal methods such as ransomware.

These efforts aim to pre-empt and respond to cyberattacks targeting cryptocurrency exchanges.

North Korea’s Role in Cyber Heists

North Korean hackers have been implicated in numerous high-profile cryptocurrency thefts, which have significantly funded the regime.

The blockchain analysis firm Chainalysis estimates their total haul in stolen cryptocurrency this year at nearly $1.6 billion.

This ongoing threat has prompted heightened international cooperation, with South Korea being a natural partner for the U.S. due to its proximity to North Korea and expertise in cybersecurity.

Spike in Bitcoin Value Raises Concerns

The recent surge in Bitcoin's value to $100,000 following the U.S. presidential election has amplified concerns over potential attacks on virtual asset platforms.

Cybersecurity experts warn that the increased value of cryptocurrencies makes them an even more attractive target for organised cybercrime groups, including those linked to North Korea.

US Tightens Sanctions Against Cybercriminal Networks

In parallel with its partnership with South Korea, the United States has intensified its actions against individuals and entities facilitating North Korea’s cryptocurrency activities.

The U.S. Treasury’s Office of Foreign Assets Control recently imposed sanctions on two individuals and a UAE-based company accused of laundering funds stolen in cybercrimes to support North Korean operations.

The regulator stated that the individuals worked through the company to convert stolen money into cryptocurrency before transferring it to North Korea.

This joint initiative between South Korea and the U.S. is a clear signal of the urgency to tackle cryptocurrency heists and safeguard digital assets in a rapidly evolving cyber landscape.