Crypto▼ Bearish
North Korea Detains Its Own Hackers for Stealing State Funds via Crypto
A South Korean report says Pyongyang arrested a cell of former military hackers for embezzling state funds and laundering via crypto, a rare case of internal targeting.
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North Korean authorities have arrested a group of former military cyber operatives and technology experts on allegations that they embezzled government funds from two state-owned financial institutions and laundered the proceeds through cryptocurrency, according to a Thursday report from South Korean outlet Daily NK.
Daily NK cited an unnamed source based in Pyongyang. Neither Cointelegraph nor other independent media have confirmed the claims. The report said the group infiltrated the internal networks of the Central Bank of the Democratic People's Republic of Korea and the Foreign Trade Bank, siphoning foreign currency reserves and trade-related funds into overseas crypto wallets.
The operation allegedly relied on intermediaries in the Chinese border cities of Sinuiju and Hyesan. Cryptocurrency brokers there converted digital assets into U.S. dollars and Chinese yuan, the report said. The cell fragmented transactions into smaller increments to avoid detection, using encrypted messaging platforms, unregistered mobile devices, and Chinese wireless infrastructure.
North Korea's National Intelligence Agency arrested the individuals on July 12 at a covert residence in Pyongyang, the report said. Authorities had identified irregularities in foreign currency transaction authorizations and traced suspicious internet protocol activity originating from foreign locations.