Exclusive: South Korea Considers Lifting North Korea Sanctions as US Exposes Crypto Heists Funding Missile Programs

Pyongyang's hackers strike again—this time funneling stolen digital assets into weapons development. Seoul faces pressure to act after US intelligence confirms the crypto-to-missiles pipeline.

Behind the firewall: How Lazarus Group's blockchain heists bypass SWIFT sanctions. Treasury officials estimate $2B+ in crypto thefts since 2020 now funds Kim's nukes.

Wall Street shrugs: 'Sanctions evasion 2.0' proves decentralized finance works exactly as designed—for everyone except compliance officers.

US Targets North Korean Crypto Laundering Network Tied to Weapons Funding

Her comments followed the US Treasury Department’s latest sanctions against eight North Korean nationals and two entities accused of laundering stolen cryptocurrency.

Among them were the Korea Mangyongdae Computer Technology Company (KMCTC) and Ryujong Credit Bank, both alleged to have funneled illicit digital funds to finance weapons development.

Treasury officials identified KMCTC president U Yong Su, as well as Jang Kuk Chol and Ho Jong Son, as central figures in laundering operations tied to ransomware and fraud schemes.

The measures target DPRK-linked operatives in China and Russia who allegedly managed front companies and accounts used to repatriate proceeds from North Korean IT workers abroad.

According to Ryan Yoon, senior analyst at Tiger Research, the MOVE marks a continuation of sanctions that began after North Korea’s 2016 nuclear test.

KIM JONG UN’S CRYPTO CRUSADE JUST BLEW UP HIS COVER

Washington just hit Pyongyang with a fresh wave of sanctions – this time over crypto-fueled nuke money. Turns out North Korea’s been laundering billions through digital heists to bankroll its weapons program.

Kim’s regime… https://t.co/UNoSx65c43 pic.twitter.com/prOWKy2R2o

“Since then, small-scale sanctions have continued to be imposed,” Yoon said, adding that while further actions are likely, their economic impact may remain limited. “This has been happening for decades,” he noted.

The renewed scrutiny underscores Seoul’s intent to align with Washington on countering North Korea’s cyber operations, which remain a persistent source of illicit funding for its weapons ambitions.

North Korea Linked to Major Crypto Hacks

North Korea has also been linked to several other major crypto heists, including those targeting Bybit, the Ronin Bridge, Harmony, and various DeFi platforms.

Global law enforcement is responding. The US Department of Justice recently moved to seize over $7.7 million in digital assets tied to North Korean IT workers embedded in blockchain firms.

Meanwhile, the US and South Korea signed a bilateral agreement in 2023 to enhance their technical capabilities in detecting and countering DPRK cyber operations.

North Korean cyber strategies continue to evolve. In April, Lazarus-linked operatives reportedly set up US-based shell companies to distribute malware to crypto developers.

Kraken recently thwarted an infiltration attempt by a suspected North Korean posing as a job candidate.