Key Points
- The U.S. and South Korea co-hosted a symposium aimed at protecting the virtual asset industry from North Korean exploitation and disrupting North Korea’s revenue generation. The event brought together government officials and private sector experts from over 40 countries.
- According to a U.N. report, North Korean cyber actors stole approximately $3 billion in virtual assets between 2017 and 2023, using the funds to support their weapons of mass destruction and ballistic missile programs.
Global Effort to Combat North Korean Cyber Threats
On August 27, 2024, New York City hosted a significant event in the ongoing battle against cryptocurrency-based cybercrime. The U.S. Department of State and the Ministry of Foreign Affairs of the Republic of Korea (ROK) jointly organized a symposium on protecting the virtual asset industry from exploitation by the Democratic People’s Republic of Korea (DPRK).
The “U.S.-ROK Joint Symposium: Protecting the Virtual Asset Industry from DPRK Exploitation and Disrupting DPRK Revenue Generation” brought together a diverse group of participants. Government officials and private sector experts from centralized virtual asset service providers (VASPs), decentralized financial platforms, blockchain analysis services, and venture capital firms representing more than 40 countries were among those in attendance.
Alarming Statistics and Ongoing Threats
The symposium highlighted the alarming scale of North Korea’s cyber operations in the cryptocurrency space. According to the March 2024 report by the UN DPRK Sanctions Committee Panel of Experts, North Korean cyber actors stole approximately $3 billion in virtual assets between 2017 and 2023.
These ill-gotten gains are reportedly being used to fund North Korea’s weapons of mass destruction and ballistic missile programs, in direct violation of multiple U.N. Security Council resolutions. The DPRK has been observed obscuring the movement of hundreds of millions of dollars in stolen cryptocurrency through various VASPs, including exchanges, bridges, mixers, and other blockchain-enabled platforms worldwide.
Collaborative Approach to Security
During the event, global industry leaders and experts from the U.S. and ROK governments provided valuable insights into current trends in North Korean virtual asset thefts and laundering techniques. They also shared information on DPRK cyber threats targeting VASPs. They offered guidance on how industry and government can collaborate more effectively to identify and halt North Korean virtual asset heists.
This symposium represents a significant step towards enhancing global capabilities in disrupting North Korea’s revenue generation and laundering activities involving virtual assets. By fostering enhanced collaboration and information sharing between governments and the private sector, the organizers hope to create a more robust defense against these cyber threats.
As the cryptocurrency industry continues to evolve, events like this symposium play a crucial role in ensuring that security measures keep pace with technological advancements, protecting investors and the integrity of the global financial system.
