North Korea arrests hackers for laundering state bank funds through crypto
North Korean authorities have arrested a group of former military hackers for allegedly stealing from the country's own Central Bank and Foreign Trade Bank. The group, arrested on July 12 in Pyongyang, reportedly laundered the state funds using cryptocurrency with the help of Chinese brokers. The incident is ironic given North Korea's history as a prolific state-sponsor of crypto hacking, though this unverified report originated from Daily NK.
Hacker arrests in Pyongyang
▪North Korean authorities arrested a group of former military hackers on July 12 at a safe house in Pyongyang.
▪The group was led by former members of a cyber warfare unit under the Reconnaissance and Intelligence General Bureau.
▪The group recruited talented graduates from Kim Chaek University of Technology and Pyongyang University of Science.
▪The arrests were made after officials detected discrepancies in foreign-currency payment approvals and suspicious overseas IP activity.
Internal bank infiltration scheme
▪The infiltrated institutions were the Central Bank of the DPRK and the Foreign Trade Bank.
▪The hackers allegedly breached the banks' internal systems, diverted foreign currency, and moved the funds to overseas crypto wallets.
▪The hackers are accused of stealing funds from two state banks and laundering the money through cryptocurrency.
Cryptocurrency laundering operation
▪To evade detection, the group split transfers into small amounts and used encrypted apps, unregistered phones, and Chinese wireless equipment.
▪Contacts in the North Korean border cities of Sinuiju and Hyesan then exchanged the crypto for cash.
▪Chinese brokers converted the stolen crypto into U.S. dollars and yuan.
North Korea state-backed hacking history
▪The United Nations, the United States, South Korea, and Japan have repeatedly accused North Korean cyber units of stealing billions of dollars in digital assets.
▪U.S. officials have linked North Korean hackers to major crypto thefts including attacks on Ronin Bridge, Harmony Horizon Bridge, and Atomic Wallet.
▪The North Korean government has repeatedly dismissed international accusations of state-backed hacking as politically motivated fabrications.
▪The report on the arrests originated from Daily NK, citing an anonymous source in Pyongyang, and could not be independently verified.
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