South Korea has imposed sanctions on 15 North Korean individuals and one entity for illegal cyber activities, including cryptocurrency theft, according to The Block.
According to Chainalysis, North Korean hackers stole $1.34 billion worth of cryptocurrency in 2024.
The South Korean government announced today that it is imposing sanctions on 15 North Korean individuals and one entity involved in illegal cyber activities, including cryptocurrency theft.
The 15 North Korean individuals worked for Bureau 313, a group affiliated with the Machine Building Industry Department of the Workers' Party of Korea, South Korea's Foreign Ministry said in a statement. The department, which has been under U.N. Security Council sanctions since 2016, is responsible for North Korea's weapons production, including its ballistic missile program.
“North Korean IT personnel are deployed to China, Russia, Southeast Asia and Africa to act as government-affiliated organizations, disguise their identities and obtain work orders from global IT companies, while some also engage in information theft and cyberattacks,” the statement said.
A representative from South Korea’s Ministry of Foreign Affairs told The Block that some of the sanctioned individuals stole cryptocurrencies through hacking attacks. However, the ministry declined to identify the individuals who carried out the cryptocurrency theft.
One sanctioned individual, Kim Chol-min, infiltrated U.S. and Canadian IT companies as an employee and sent large amounts of foreign currency to Pyongyang.
South Korea also imposed sanctions on a North Korean entity that sends large numbers of North Korean IT workers abroad and sends money to fund the regime and its military.
North Korean hacking activity on the rise
North Korean hackers are believed to be behind some of the largest cryptocurrency hacks. On Monday, the Federal Bureau of Investigation (FBI) announced that North Korean cyber actors were involved in the $308 million theft of Japanese crypto firm DMM Bitcoin, which led to the company’s closure.
Last week, the U.S. Treasury Department imposed sanctions on two individuals and one entity for laundering money for North Korea through a company in the United Arab Emirates.
According to blockchain analysis firm Chainalysis, North Korean hackers stole $1.34 billion worth of cryptocurrency in 47 incidents, accounting for 61% of the total amount stolen this year, showing an increase in both amount and frequency.
The Chainalysis report states: “Some incidents appear to be linked to North Korean IT workers, who are increasingly infiltrating crypto and Web3 companies, compromising their networks, operations, and integrity. These workers often use sophisticated tactics, techniques, and procedures (TTPs), such as false identities, third-party recruitment intermediaries, and manipulation of remote work opportunities to gain access.”