South Korea Sanctions 15 North Koreans and Entity Over Crypto Heists

Highlights:

• South Korea sanctions 15 North Korean IT members and one firm for involvement in cyber thefts.
• Organization Bureau 313, involved in weapons programs, sends IT workers abroad for illicit activities.
• North Korean hackers stole $1.34 billion in 2024, making up 61% of global crypto theft.

On Dec. 26, the South Korean government announced that it imposed sanctions on 15 North Korean IT organization members and one related organization for engaging in illicit cyber activities, including crypto thefts.

Advertisement

South Korea’s Ministry of Foreign Affairs revealed details about 15 North Korean individuals. These individuals work for Bureau 313, part of the Workers’ Party of Korea’s Machine-Building Industry Department. This department, under UN sanctions since 2016, handles weapons production and ballistic missile programs. This organization sends numerous IT professionals from North Korea overseas.

The Ministry disclosed that North Korean IT professionals frequently operate in countries such as China, Russia, and Southeast Asia. These workers often conceal their true identities to secure contracts with international IT firms. Some of them participate in activities like information theft and launching cyberattacks. One sanctioned individual, Kim Cheol-min, infiltrated IT firms in the U.S. and Canada. He sent large amounts of foreign currency to Pyongyang.

North Korean Hackers Steal $1.3 Billion in Cryptocurrency in 2024

The decision comes amid growing proof of North Korea’s role in major crypto hacks. On Monday, the Federal Bureau of Investigation confirmed that North Korean cyber actors were responsible for stealing $308 million from Japan-based DMM Bitcoin. This theft led to the company’s closure.

Merry hack-mas

North Korean hacking group pull off $307M crypto heist from the Japan-based exchange DMM Bitcoin.

The TraderTraitor group stole bitcoins worth about 48.2 billion yen ($307 million) from crypto-asset exchange service provider DMM Bitcoin in May, the National… pic.twitter.com/HmGc4TorrW

— Stacy (@PaTrumpGirl) December 24, 2024

Chainalysis reported that North Korean hackers stole $1.34 billion in cryptocurrency this year. This involved 47 incidents, making up 61% of global crypto theft for the year. The report highlighted advanced tactics by North Korean IT workers. They use fake identities, intermediaries, and remote work to access crypto companies.

Chainalysis wrote:

“Notably, attacks between $50 and $100 million, and those above $100 million occurred far more frequently in 2024 than they did in 2023, suggesting that the DPRK is getting better and faster at massive exploits.”

Over 30% of South Koreans Hold Crypto

Data from the Bank of Korea shows an increase in the number of cryptocurrency investors in South Korea. By the close of November, more than 15.59 million individuals in South Korea owned crypto assets. This accounts for more than 30% of the country’s population of 51.23 million.

The number of investors grew by 610,000 from October, when the total was 14.98 million. This rise is reflected in data from South Korea’s top five exchanges: Upbit, Coinone, Korbit, Bithumb, and GOPAX. The growth follows increasing optimism in the virtual asset market after the U.S. presidential election.

According to data from the Bank of Korea, as of the end of November, the total number of cryptocurrency investors in South Korea exceeded 15.59 million for the first time, accounting for more than 30% of the country's population, with total assets of US$79 billion and average…

— Wu Blockchain (@WuBlockchain) December 25, 2024

The sharp increase in investors in November coincided with a rise in Bitcoin prices. Bitcoin jumped from approximately 100 million KRW at October’s end to over 135 million KRW by November’s close. The influx of domestic investors, along with rising Bitcoin prices, boosted total crypto holdings.

In November, total crypto holdings reached 102.6 trillion KRW (around $70 billion). This marks a significant increase from 58 trillion KRW (approximately $40 billion) in October.

Advertisement