Seoul Cracks Down: North Korea’s Crypto Heists Spark Tough New Penalties
Pyongyang's digital loot keeps growing—and South Korea's had enough.
The hack attack escalates
North Korean-linked cybercriminals just ripped another $200M from DeFi protocols last quarter, per Chainalysis. Now Seoul's drafting legislation that could freeze assets—or worse—for anyone facilitating these transactions.
Why this hurts twice
Every stolen ETH funds Kim's nukes while making crypto look like the Wild West—exactly when institutions want regulatory clarity. (Wall Street bankers, meanwhile, still get bailouts for losing gambles.)
The irony stings
The same blockchain transparency that tracks these heists makes sanctions evasion harder. But until exchanges stop being leaky sieves, expect more 'Anonymous'-style hacking collectives... with nuclear backing.
Kim says South Korea is following the United States’ lead
Second Vice Foreign Minister Kim disclosed that her country is awaiting clarification from the U.S. side regarding internal coordination. She added that Washington is currently working on reviewing and adjusting the wording of a joint fact sheet regarding the outcome of last week’s meeting between President Donald TRUMP and President Lee Jae Myung.
The U.S. Treasury Department recently asserted that the North Korean government relies on several illegal activities, including cybercrime, and explicitly tasks its hackers to raise funds using these illicit means. It added that North Korea’s cybercriminals have so far stolen $3 billion, mainly in crypto, using social engineering and advanced malware.
“By generating revenue for Pyongyang’s weapons development, these actors directly threaten U.S. and global security. Treasury will continue to pursue the facilitators and enablers behind these schemes to cut off the DPRK’s illicit revenue streams.”
–John Hurley, Under Secretary of the Treasury for Terrorism and Financial Intelligence
However, the U.S. Treasury Department pointed out that nabbing these North Korean malicious actors has become increasingly complex because they are scattered around the world under hidden identities. They also collaborate with non-North Korean freelancers on projects originally commissioned by the North Korean government, then split the income.
The Department further stated that all properties or dealings with sanctioned individuals or entities are blocked and must be reported to OFAC (the Department of the Treasury’s Office of Foreign Assets Control). Meanwhile, North Korean President Kim Jong Un believes these measures are hostile.
Ang says South Korea has considered sanctioning North Korea before
Angela Ang, Head of Policy and Strategic Partnerships for Asia Pacific at TRM Labs, stated that this WOULD not be the first time South Korea has considered sanctioning North Korea independently. She added that OFAC sanctions have far-reaching implications, as they cut off access to the global financial system, and South Korea’s sanctions would be seen as a reinforcement of these restrictions.
Ryan Yoon, a Senior Analyst at Tiger Research, also acknowledged a high possibility of South Korea imposing more sanctions on North Korea. However, the impact may not be as significant. Yoon pointed out that the escalation between North and South Korea follows North Korea’s nuclear testing in 2016. Large-scale exchanges between the two countries were severed entirely during that time, and small-scale sanctions have continued to be imposed.
Cryptopolitan previously reported that representative Lee Yang-soo of the ruling People Power Party has called on South Korea’s financial authorities to closely monitor crypto exchanges in the region. He added that, above all, they should accurately identify the true nature of these illicit actions and devise countermeasures.
Get up to $30,050 in trading rewards when you join Bybit today
