Key facts
- North Korean authorities have reportedly arrested former military hackers.
- The group is accused of stealing funds from two state banks, including the Central Bank of the DPRK and the Foreign Trade Bank.
- Stolen funds were allegedly converted into cryptocurrency and laundered through China-based brokers.
- Transfers were split into small amounts to avoid detection.
- The arrests were reportedly made by North Korea's National Intelligence Agency.
North Korean authorities have reportedly arrested a group of former military hackers and IT specialists accused of stealing state funds from two banks and laundering the proceeds through cryptocurrency, according to a Daily NK report citing an anonymous source in Pyongyang. The group allegedly breached the internal systems of the Central Bank of the DPRK and the Foreign Trade Bank, diverting foreign currency and state trade funds into overseas crypto wallets. Chinese brokers then allegedly converted these assets into U.S. dollars and yuan, with contacts in border cities exchanging the crypto for cash in real time. The group reportedly split transfers into small amounts to avoid detection, using encrypted messaging apps, unregistered phones, and Chinese wireless equipment. North Korea’s National Intelligence Agency arrested the suspects at a Pyongyang safe house on July 12 after detecting discrepancies in foreign-currency payment approvals and suspicious overseas IP activity. This alleged laundering route mirrors methods previously used by North Korean hacking groups to cash out stolen cryptocurrency.