Concerns are mounting that North Korea may significantly ramp up its virtual asset theft operations this year, which are a key funding source for its illegal nuclear and missile programs.
According to Yonhap News, Seth Bailey, Director of the Office of Korean and Mongolian Affairs at the U.S. Department of State, addressed this issue during a symposium titled “Protecting the Virtual Asset Industry from DPRK Exploitation and Disrupting DPRK Revenue Generation.” Held on the 27th at the Hilton Midtown in New York, the event brought together approximately 40 representatives from global government agencies and industries. Among the attendees was Lee Jun Il, Director General for North Korean Nuclear Affairs.
He cited an analysis from the blockchain analytics firm TRM Labs, stating, “When approximately one-third of the virtual asset theft last year is believed to be attributed to North Korean hackers, the scale of this year is expected to increase.”
Bailey explained that over 40% of the funding for North Korea’s weapons of mass destruction and ballistic missile development programs seems to be sourced through cryptocurrency channels. He noted that North Korea is leveraging virtual currency theft as a new funding source, which contributes to programs that threaten global security.
He emphasized the collaborative efforts with like-minded countries, such as South Korea and Japan, to develop government policies and procedures aimed at curtailing North Korea’s actions.
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