The Multilateral Sanctions Monitoring Team (MSMT) reported that North Korea’s elite cyber force laundered approximately $1.65 billion in virtual currency between January and September. The illicit funds were reportedly used to support the country’s illegal weapons of mass destruction (WMD) development and ballistic missile programs.
The monitoring team noted that the total includes $1.4 billion stolen from cryptocurrency exchange Bybit in February and $1.2 billion obtained through other illegal cryptocurrency activities in 2024.
North Korea uses IT personnel to launder money
North Korea has found ways to circumvent UN sanctions, including using cryptocurrencies to trade raw materials and military weapons. North Korea also sends large numbers of IT personnel overseas to launder money and generate income for North Korea, according to a report by an international sanctions watchdog group.
This revelation is Analysts conducted research and found that North Korea has stepped up its cyber activities in recent years under the leadership of Kim Jong Un. According to their findings, hacking has become the main means applied to earn foreign exchange as stricter measures are taken to tackle nuclear and weapons efforts.
It also found that the country’s officials were using stablecoins for transactions related to the purchase of raw materials such as copper, which are essential for the production of munitions and weapons.
To further circumvent UN sanctions, North Korea has sent IT workers to at least eight countries, including China, which has the largest number of workers, as well as Russia, Laos, Cambodia, Equatorial Guinea, Guinea, Nigeria, and Tanzania.
Additionally, MSMT has announced its intention to send 40,000 workers to Russia, including several groups of IT workers, as UN sanctions restrict individuals from earning money abroad.
Meanwhile, North Korea has received strong support from Russia, which has provided weapons and sent many soldiers to support Russian forces in the fight against Ukraine.
North Korea’s intensifying cyber activity raises security concerns
MSMT discussed the 2024 report of 38 North, an analysis program run by the Stimson Center think tank. The report highlighted how North Korean IT workers concealed their nationality to win contracts for anime projects managed by Japanese and American companies such as Amazon and HBO Max.
When the press asked Amazon to comment on the allegations, a spokesperson for the tech giant insisted that the company had never directly employed any of these workers.
“We previously worked with an animation studio that employed subcontractors who were allegedly involved in this situation. However, those individuals were not Amazon employees and did not have access to our internal systems,” the spokesperson said.
HBO did not respond to a reporter’s request for comment. Meanwhile, the report also pointed out that besides Amazon and HBO Max, North Korean animators are collaborating with companies such as SEK’s state-run animation studio in Pyongyang. The company is best known for backing Western projects, including the 2007 film “The Simpsons Movie.”
Additionally, Seoul’s intelligence agency reported last year that North Korean operatives posing as recruiters used LinkedIn to target victims with job offers. To accomplish this, they asked South Koreans working in defense companies for information on the technology.
Launched in October last year, the MSMT monitors and reports on violations of UN Security Council sanctions against North Korea. However, it operates independently of the United Nations and its members include: UK, Canada, Italy, South Korea, Netherlands, USA, Australia, New Zealand, Japan, France, Germany.
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