In a bold move to combat illicit weapons funding, the South Korean government is crafting a comprehensive bill aimed at tracking and freezing North Korean cryptocurrency and virtual assets. This strategic initiative, detailed in a report by the Korea JoongAng Daily, signals the nation’s determination to bolster its cybersecurity framework, viewed as a crucial aspect of national security.
Escalating Measures to Safeguard National Interests
Underpinning this legislative endeavor is a concerted effort to mitigate the threat posed by North Korea’s exploitation of cryptocurrencies for unlawful gains. Sources within the government have revealed that the latest version of the bill incorporates sophisticated mechanisms to trace and neutralize crypto and virtual assets pilfered by North Korean actors through cyberattacks—a significant enhancement compared to the bill’s original draft presented by the National Intelligence Service (NIS) in November 2022.
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![South Korea Cracks Down on North Korean Crypto Activity image 14](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/09/image-14.png?resize=590%2C458&ssl=1)
Additionally, South Korea’s administration is reportedly preparing to establish a national cybersecurity committee directly under the president’s purview. This committee will play a pivotal role in fortifying the nation’s defenses against cyber intrusions by foreign entities and will be led by the National Security Office’s chief, with participation from the NIS director.
North Korean Cyberattacks and International Response
North Korean hackers have been responsible for a wave of cryptocurrency thefts, exploiting various vulnerabilities to accumulate a substantial digital asset portfolio. Recent estimates by blockchain intelligence firm TRM Labs indicate that since 2018, North Korean cyberattacks have siphoned off approximately $2 billion in digital assets. Shockingly, in 2023 alone, North Korea is believed to have pilfered $200 million in crypto, constituting 20% of the total stolen funds for the year.
Notably, the United States Federal Bureau of Investigation (FBI) is actively engaged in tracking North Korean state-backed hackers. A recent development saw the FBI identifying six Bitcoin wallets linked to the notorious North Korean hacking group Lazarus, containing 1,580 Bitcoin valued at roughly $40 million—allegedly proceeds from various high-profile cyber heists. As nations intensify their efforts to counter cyber threats, the battle to safeguard digital assets and maintain cybersecurity remains an ongoing and global challenge.
Related: North Korean Hackers Steal $2B in Crypto in 4 Years