Japan is reportedly urged G7 countries to take coordinated actions against North Korea’s cryptocurrency theft at the Canadian summit.
According to local media, Prime Minister Isba is expected to raise the issue during the G7 meeting scheduled for June 15th to 17th, citing an increasing threat of cyber-responsive financial crimes related to North Korea.
The proposal marks the first time that the G7 formally considers the collective response to code theft linked to state-sponsored actors. The seven-person group consists of Canada, France, Germany, Italy, Japan, the UK, the US and the European Union.
Isba is calling for greater cooperation among G7 members to strengthen surveillance in the digital asset market and curb the illegal flow of funding arms development. Authorities believe that reducing these funding channels is important to help with non-proliferation efforts and strengthening local security.
One of the catalysts behind Japan’s push is the $307 million hack of DMM Bitcoin, one of the largest crypto exchanges in the country. Japanese police and the FBI have linked the May 2023 incident to a North Korean hacking group known as the Tradertraitor, also known as Jade Sleet and UNC4899.
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Investigations reveal that the attacks came from social engineering campaigns and malicious Python scripts. This was planted after North Korean operatives pretending to be recruiters tricked employees of Ginco, a wallet software provider that serves DMM Bitcoin.
The malware allowed attackers to access GINCO’s internal systems, which later exploited to manipulate transaction requests in DMM Bitcoin, leading to theft.
Over 4,500 BTC, valued at $307 million at the time, was stolen, urging the exchange to close operations.
Authorities tracked funds stolen in wallets managed by Tradertraitor Group, previously approved by the US Treasury Department for engaging in cyberattacks to fund North Korea’s weapons program.
Beyond Japan, North Korea-related hackers have been linked to some of the biggest crypto-related robberies in recent years, including attacks on Crypto Exchange Bybit, Ronin Bridge, Harmony, and various other Defi platforms.
In response, authorities around the world strengthened their enforcement. The U.S. Department of Justice recently submitted forfeiture measures to seize more than $7.7 million in crypto assets linked to North Korean IT workers built into blockchain companies as part of the DPRK Revgen initiative launched in 2024 to disrupt illegal revenue networks.
Last year, the US and South Korea signed a bilateral agreement to develop joint technologies to combat cryptocurrency theft by increasing detection and response capabilities for cyber actors associated with DPRK.
read more: Crypto ExchangeKraken Flags attempted via fake recruitment application via North Korea’s intrusion attempt
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