UN report shows North Korea funds its missile program using stolen cryptocurrencies

• North Korea continues to fund its missile program via stolen crypto as per investigators.
• Last year in 2021, North Korea stole digital assets worth $400 million by attacking exchanges in Europe, America, and Asia.

The autocratic country of North Korea continues with its nefarious activities of stealing cryptocurrencies and thus funding its missile program, says a recent UN report. The report further adds that North Korea has stolen millions of dollars worth of digital assets between 2020 and mid-2021.

As per investigators, the notorious country stole more than $50m (£37m) of digital assets during this period. The report also adds that these attacks are an “important revenue source” for North Korea’s ballistic missile program.

The investigators handed this report last Friday to the UN sanctions committee. Furthermore, the report shows that North Korea attacked at least three crypto exchanges in each of Europe, America, and Asia. As reported in December 2021, North Korea has stolen $1.7 billion in total from exchanges worldwide.

The report references a study from blockchain security firm Chainalysis published last month. The report notes that cyberattacks from North Korea might have netted a total of $400 million alone last year.

Read More: North Korea made away with a record $400M of crypto in 2021: Report

North Korea has been further using all of this money to bolster its nuclear and ballistic missile infrastructure. North Korea has been facing crippling sanctions from the United Nations. However, this hasn’t deterred the nation-state from pursuing its missile program.

Avoiding sanctions using crypto

Cryptocurrencies have turned out to be an efficient tool for the North Korean state in order to avoid U.S. sanctions. The North Korean hackers have used various techniques to breach crypto exchanges operating worldwide.

This includes several phishing lures, malware, and code exploits. As a result, the hackers have successfully managed to exploit exchanges’ hot-wallets and later move them to North Korea-controlled addresses. Most of the attacks have been carried by the country’s notorious Lazarus group.

Besides, North Korea’s primary intelligence bureau – the Reconnaissance General Bureau, is reportedly behind these attacks. Furthermore, North Korea has also resolved to use privacy cryptocurrencies like Monero.

Cryptocurrencies have turned out to be a major source of income for North Korea. The country also benefits from the unclear global regulations surrounding digital assets. Furthermore, the country suffered major trade losses after closing its border due to the COVID-19 pandemic. This could have also pushed its hackers to carry more attacks on foreign exchanges.

Furthermore, a previous report noted that North Korea plans to continue holdings its digital assets. The report notes:

Whatever the reason may be, the length of time that (North Korea) is willing to hold on to these funds is illuminating, because it suggests a careful plan, not a desperate and hasty one.