The recent crypto market crash wiped out hundreds of millions of dollars. However, this has also led to a sharp drop in the value of crypto stolen by North Korea.
According to four digital researchers, the decline in the value of the stolen crypto is threatening a critical source of funding for the country under sanctions and its weapons programs.
According to the US Treasury Department, North Korea has invested significant resources in cryptocurrency theft in recent years, making it a serious cyber threat. The country was involved in one of the largest cryptocurrency heists in March, looting more than $615 million. The heist in question is the Axie Infinity Ronin Bridge hack.
Pyongyang’s ability to capitalize on the above and subsequent heists has been hampered by the sharp drop in cryptocurrency values. This could have an impact on the way it finances its weapons projects. Due to the sensitivity of the subject, the sources requested anonymity.
How Much Has North Korea Lost In Crypto?
According to New York-based blockchain analytics startup Chainalysis, the value of old, non-laundered North Korean crypto assets, including money taken in 49 hacks from 2017 to 2021, has fallen from the beginning of the year. $170 million to $65 million, the company said. Reuters.
According to Nick Carlsen, an analyst at TRM Labs, a US-based blockchain analytics firm, one of North Korea’s cryptocurrency caches from a 2021 heist worth tens of millions of dollars has lost 80% to 85% of its value. in recent weeks and is now worth less than $10 million.
Analysts are hesitant to release details about the types of cryptocurrencies North Korea has as it could reveal their research techniques. Ether accounted for 58%, or about $230 million, of the $400 million stolen in 2021, according to Chainalysis.
Chainalysis and TRM Labs track transactions and spot possible crimes using publicly available blockchain data. Sanctions monitors have reported this activity, and public tender documents indicate that both companies are collaborating with the IRS, FBI and DEA, among other US government organizations.
Eric Penton-Voak, the coordinator of the United Nations sanctions-monitoring panel of experts, said at a meeting in Washington DC that cyber-attacks have become essential to Pyongyang’s ability to evade sanctions. In addition, they also raise money for their nuclear and missile programs, although cryptocurrencies are thought to make up a small part of North Korea’s finances.
Sanctions monitors noted in 2019 that North Korea had used hackers to raise an estimated $2 billion for the development of weapons of mass destruction.