North Korea Accused By UN For Stealing $3 Billion Worth Of Crypto Assets

United Nations (UN) sanctions monitors have recently accused North Korea of engaging in a significant theft of cryptocurrency assets, amassing $3 billion through cyberattacks. An independent panel of sanctions monitors disclosed that North Korea persistently flouted regulations despite international sanctions, by advancing its nuclear arsenal and generating nuclear fissile materials.

The monitors also observed that the country conducted ballistic missile launches, deployed a tactical nuclear attack submarine, and successfully launched a satellite into orbit. The UN report identifies 58 suspected cyberattacks on cryptocurrency-related companies between 2017 to 2023, valued at about $3 billion. These cyberattacks purportedly served as vital funding sources for WMD development in North Korea.

The Context

The report alleges that hacking groups affiliated with the Reconnaissance General Bureau, the primary foreign intelligence agency in North Korea, orchestrated these cyber intrusions. The monitors underscored the growing trend of North Korea targeting defense companies and supply chains, as well as collaborating with other entities by sharing infrastructure and tools.

Furthermore, the UN raises concerns about rumors of North Korea supplying conventional arms and munitions, which violate existing sanctions. Although the UN report is scheduled for public release later this month or early next, North Korean representatives have yet to respond to requests for comments on the allegations made by the sanctions monitors.

Mounting Tensions

The Security Council, typically at an impasse on this issue, is unlikely to take immediate action against North Korea. China and Russia have advocated for easing the sanctions to encourage North Korea to return to denuclearization talks. In addition, Russia and North Korea have recently vowed to enhance military relations, although both countries deny accusations of weapons supply.

Regarding illicit trade, the report indicates that despite the lockdown imposed amid the COVID-19 pandemic, North Korea has started to gradually reemerge. The UN report demonstrates signs of trade recovery, with higher trade volumes in 2023 compared to 2022.

Notably, the UN monitors noted the reappearance of foreign consumer goods, including potential luxury items prohibited under Security Council sanctions. The sanctions monitors also probed reports of numerous North Korean nationals working overseas, violating sanctions, particularly in information technology, restaurants, and construction sectors. These individuals were found to earn income benefiting the North Korean government.