The United Nations (UN) is intensifying its efforts to address suspicions of North Korea's inappropriate use of cryptocurrency, initiating a probe into hacking factions associated with the nation. These groups are alleged to have masterminded cyberattacks on cryptocurrency companies over the past six years, accumulating an astonishing $3 billion in stolen funds supposedly earmarked for supporting their weapons of mass destruction (WMD) program.
This inquiry, managed by an autonomous UN sanction committee, scrutinizes 58 cyber assaults directed at crypto-related entities from 2017 to 2023. The embezzled funds, valued at $3 billion, are purportedly crucial in funding North Korea's WMD development, sparking global apprehensions regarding their nuclear and missile initiatives.
This action follows 2023 reports indicating that North Korean hacking units pilfered approximately $1 billion in cryptocurrency through 20 hacks. Although this figure signifies a decrease from the $1.7 billion stolen in 2022, blockchain intelligence firms caution about a disturbing pattern. They anticipate more sophisticated and detrimental attacks in 2024, potentially resulting in even greater financial losses for cryptocurrency enterprises.
"Despite advancements in cybersecurity measures implemented by exchanges and heightened international cooperation to trace and recover stolen funds, 2024 is likely to witness further disruptions from the globe's most prolific cyber-thief," cautions TRM Labs, a blockchain intelligence firm.
Adding to the anxieties, the UN Office on Drugs and Crime recently underscored the misapplication of cryptocurrency in illicit economies emerging in East and Southeast Asia. Unregulated or unlawful gambling establishments and "pig-butchering" romance scams are reportedly thriving in the Mekong region, prompting concerns about the potential misutilization of crypto for criminal activities.