Key facts
- North Korea has generated an estimated $3 billion from cryptocurrency hacks between 2017 and 2023.
- These hacks are estimated to fund half of North Korea's foreign currency income.
- Some estimates suggest stolen billions fund 40% of North Korea's weapons of mass destruction programs.
- In 2023, 17 suspected crypto hacks were valued at $750 million.
- The Lazarus Group, also known as TraderTraitor, is attributed to these hacks.
North Korea, largely cut off from the global economy, relies on sophisticated cryptocurrency hacks to generate foreign earnings, with billions of dollars allegedly funding its nuclear weapons program. Experts attribute major thefts, such as the $6.3 billion Binance hack, to elite North Korean hacking units like the Lazarus Group (also known as TraderTraitor).
A UN panel of experts is investigating 58 suspected North Korean cyber-attacks on crypto companies between 2017 and 2023, totaling $3 billion. These funds are estimated to constitute half of North Korea's foreign currency income, with some estimates suggesting 40% of its weapons of mass destruction programs are financed by these illicit gains.
While traditional banks have robust cyber defenses, the fast-growing and less regulated cryptocurrency sector has been a more accessible target. North Korea has a history of such attacks, including a 2016 attempt on the Bank of Bangladesh and a 2014 hack on Sony Pictures.