North Korea Arrests Its Own Hackers for Crypto Theft

Elite North Korean hackers who formerly belonged to a state cyberwarfare unit were arrested on July 12 after stealing from the regime itself. The group infiltrated the Chosun Central Bank and the Foreign Trade Bank, converting state funds into cryptocurrencies to launder them through brokers in China.

The arrests mark the first known instance of North Korean authorities moving against state-trained cyber operatives, three people familiar with the investigation said. The hackers used crypto exchanges and peer-to-peer brokers in China to wash the stolen funds, mimicking the same techniques Pyongyang's Lazarus Group has used for years against foreign targets.

One person briefed on the case said the total amount stolen has not been publicly disclosed. The operation ran for several months before detection.

Blockchain analytics firm Chainalysis has said North Korean cyber operations have stolen an estimated $3 billion in crypto assets since 2017.