“The symposium is part of our ongoing efforts to curb the Democratic People’s Republic of Korea’s (DPRK) attempts to earn revenue for its weapons of mass destruction and ballistic missile programs in violation of multiple UN Security Council resolutions,” the State Department said in a news release.
Participants included government officials as well as digital assets experts from DeFi platforms, blockchain analysis services, venture capital firms, and other industry stakeholders, representing more than 40 countries. During the event, speakers provided updates on current trends in DPRK virtual asset thefts and laundering, information on DPRK cyber threats to digital assets firms and guidance on how industry and government can better align efforts to curb Pyongyang's crypto theft.
North Korea committed more hacking crimes than ever in 2023 – a 20 – but stole less (US$1 billion) than its all-time high of US$1.7 billion in 2022. Chainalysis’s data show that North Korea-linked hackers stole about US$428.8 million from DeFi platforms in 2023, US$330 million from exchanges, US$150 million from targeted centralized services and US$127 million from wallet providers.
Research by the blockchain intelligence firm TRM Labs shows that North Korea stole $600 million in crypto in 2023. Hacks perpetrated by the DPRK were typically ten times as damaging as those not linked to the DPRK. Worryingly, the uptick in digital asset thievery by North Korea appears to tied in with an acceleration in the country’s ever-concerning missile programs. Pyongyang fired more missiles in 2022 than any other year, including 23 in a single day. While cryptocurrency theft is a relatively new source of income for Pyongyang, it is estimated that more than 40% of the funding for North Korea's weapons of mass destruction (WMD) and ballistic missile development programs is sourced through cryptocurrency channels.
At a U.S. Senate hearing in March, Senator Elizabeth Warren estimated that the amount of crypto North Korea steals could be used to fund the construction of 56 intercontinental ballistic missiles annually. “And the threat is not letting up,” she said, noting that in March over a period of just two days, North Korea laundered more than US$23 million worth of crypto that it stole.