Seoul, New York, August 28, 2024 – Observations suggest that North Korea continues to intensify its efforts to fund its nuclear and missile development programs by stealing virtual currencies. This year, the scale of virtual currency theft by the North Korean regime is expected to further increase, according to reports from the South Korean news agency, Yonhap.
The revelation comes as the United States and South Korea jointly hosted a seminar in New York, where the US Special Representative for North Korea Policy, Seth Bailey, spoke about the issue. Bailey highlighted that North Korea has been using stolen virtual currencies to fund projects that have global impacts, contributing to security instability.
Seth Bailey, speaking during the seminar, cited a report from blockchain analytics firm TRM Labs that suggests that last year, approximately one-third of global virtual asset theft was carried out by North Korean hackers. Bailey forecasted that this year’s scale could increase further, with reports indicating that the amount stolen in the first half of 2024 was $1.38 billion, a significant doubling compared to the previous year.
Bailey further noted that for North Korea, virtual currency theft represents a new source of income. The funds for the development of large-scale weapons and missiles come largely from virtual currencies, with more than 40% of the funding derived from this source. As a result, the US and South Korea, along with Japan, are collaborating closely to share information and develop policies to counteract North Korean activities.
International Cooperation Against North Korea’s Virtual Currency Theft
In his opening remarks, Director of the Korea Peninsula Policy Bureau, Lee Gwan-il, expressed that the cooperation between South Korea and the US in addressing North Korean cyber threats was established in August 2022. This partnership has been instrumental in working towards curtailing North Korea’s nefarious cyber activities. The seminar provided a platform for discussing strategies to protect virtual assets from cyber attacks and money laundering.
Global Concerns and Policy Responses
The growing concern over North Korea’s use of virtual currencies for illicit purposes underscores the need for international cooperation in addressing the threat. This issue is not only a financial concern but also a security challenge, as it could potentially finance North Korea’s nuclear and missile programs, which pose a significant threat to global stability.
Conclusion
As the world continues to monitor North Korea’s nuclear and missile development, the growing reliance on virtual currencies for funding raises questions about the effectiveness of existing sanctions and the need for innovative strategies to address this financing mechanism. The international community, particularly the United States, South Korea, and Japan, is taking concerted action to mitigate the risk posed by North Korea’s virtual currency theft, highlighting the complexity of the challenge and the need for sustained global cooperation.
This article is based on the existing information provided in the prompt, aiming to offer a clear, coherent, and factual overview of the situation without introducing new or speculative elements.
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