TLDR
- North Korea launders $1.65B in cryptocurrency between January and September.
- $1.4B stolen from Bybit exchange and $1.2B from other illicit crypto activities.
- North Korea uses stablecoins for transactions involving military equipment.
- IT workers deployed abroad to launder funds and evade UN sanctions.
- North Korea strengthens ties with Russia, providing military assistance.
North Korea has laundered $1.65 billion in cryptocurrency between January and September, according to the Multilateral Sanctions Monitoring Team (MSMT). The illicit funds support the country’s weapons of mass destruction (WMD) and ballistic missile programs. The laundering activities are part of North Korea’s ongoing efforts to evade UN sanctions and continue its illegal operations.
Bybit Hack and Other Cryptocurrency Activities
In February, North Korea stole $1.4 billion from the crypto exchange Bybit. This theft was part of a broader effort to amass funds for its WMD development. Additionally, the country obtained $1.2 billion through other illicit cryptocurrency activities in 2024. These activities are central to North Korea’s strategy of circumventing international sanctions.
The MSMT’s report reveals that North Korea increasingly relies on cryptocurrency for trade and weapons procurement. The country utilizes stablecoins for transactions involving military equipment and raw materials, such as copper. Copper, essential for producing weapons, is often acquired through these illicit channels.
North Korea has deployed IT workers abroad to launder funds and generate income for Pyongyang. These workers are strategically placed in countries like China, Russia, Laos, and others. The MSMT reveals that North Korea sent these workers to at least eight nations, circumventing sanctions and continuing its illicit activities.
Russia hosts the highest number of North Korean IT workers, according to the MSMT. These workers contribute to laundering funds and supporting North Korea’s military programs. The country’s cyber operations have intensified, particularly under the leadership of Kim Jong-un, to evade the sanctions imposed on the regime.
North Korea’s Ties with Russia and the Use of Subcontractors
North Korea continues to receive significant support from Russia. In exchange for arms, North Korea has sent soldiers to assist Moscow’s troops in the Ukraine conflict. The relationship between North Korea and Russia strengthens as they both face international sanctions.
The MSMT also discusses a 2024 report from the 38 North program, operated by the Stimson Center. According to the report, North Korean IT workers worked on animation projects for companies like Amazon and HBO Max. These workers concealed their nationalities, making it difficult to trace their involvement.
Amazon responded to the claims, stating, “We previously collaborated with an animation studio that employed subcontractors allegedly involved in this situation.” HBO did not respond to inquiries regarding these claims. The involvement of North Korean animators in Western projects underscores the country’s continued use of its workforce to generate revenue.
The MSMT also reports that North Korean agents used LinkedIn to recruit South Koreans working at defense firms. These agents posed as recruiters and offered job opportunities to target individuals with access to defense technologies. This method shows North Korea’s ongoing attempts to steal sensitive information and further evade sanctions.
In response to these activities, the MSMT has increased its monitoring efforts. Since its launch in October 2024, the MSMT has been tasked with tracking violations of UN Security Council sanctions on North Korea. The team operates independently from the UN but works closely with several member states.
North Korea’s methods of laundering funds and bypassing sanctions have become more sophisticated over the years. These actions continue to support the country’s development of WMDs and ballistic missiles. Despite international efforts to isolate North Korea, its cyber capabilities and use of cryptocurrency allow it to maintain its illicit programs.
