**North Korea Launders $1.65 Billion in Cryptocurrency Between January and September 2024**
According to the Multilateral Sanctions Monitoring Team (MSMT), North Korea has laundered an estimated $1.65 billion in cryptocurrency from January to September 2024. These illicit funds are primarily used to support the country’s weapons of mass destruction (WMD) and ballistic missile programs, enabling Pyongyang to evade United Nations (UN) sanctions and continue its illegal operations.
### Major Crypto Thefts and Illicit Activities
In February 2024, North Korea executed a massive cyber theft, stealing $1.4 billion from the cryptocurrency exchange Bybit. This heist was part of the regime’s broader effort to amass funds for its WMD development. Additionally, North Korea obtained approximately $1.2 billion through other illicit cryptocurrency activities throughout the year.
These cyberattacks and laundering operations are central to North Korea’s strategy of circumventing international sanctions. The MSMT report highlights the country’s increasing reliance on cryptocurrencies to facilitate trade and procurement related to its military programs.
### Use of Stablecoins and Illicit Trade
North Korea extensively uses stablecoins in transactions involving military equipment and raw materials such as copper—a key resource for weapons manufacturing. These cryptocurrency-based transactions are conducted via illicit channels, allowing the country to avoid traditional financial scrutiny.
### Deployment of IT Workers Abroad for Laundering and Income Generation
To further bypass sanctions and launder funds, North Korea has deployed IT workers strategically across at least eight countries, including China, Russia, and Laos. According to the MSMT, Russia hosts the highest number of these workers. These IT personnel aid in laundering illicit proceeds and generating additional income for the regime.
Cyber operations under Kim Jong-un’s leadership have intensified, reflecting North Korea’s sophisticated efforts to evade sanctions and sustain its weapons programs.
### Strengthening Ties with Russia and Military Collaboration
North Korea continues to strengthen its alliance with Russia, providing military assistance in exchange for arms. The two sanctioned nations have deepened cooperation, notably through the deployment of North Korean soldiers to aid Russian forces fighting in Ukraine.
### North Korean IT Workers in Western Animation Projects
The MSMT also cites a 2024 report from the 38 North program, affiliated with the Stimson Center, revealing that North Korean IT workers contributed to animation projects for major Western companies such as Amazon and HBO Max. These workers concealed their nationalities, making it difficult to trace their involvement.
Amazon responded by acknowledging previous collaboration with an animation studio that employed subcontractors allegedly connected to North Korean workers, while HBO did not comment on these claims. This involvement exemplifies how North Korea uses its workforce abroad to generate revenue while concealing illicit activities.
### Recruitment of South Korean Defense Workers via LinkedIn
In addition to cyber theft and laundering, North Korean agents have reportedly used LinkedIn to recruit South Koreans employed at defense firms. Posing as recruiters, they offered job opportunities targeting individuals with access to sensitive defense technologies. This method underscores Pyongyang’s ongoing efforts to steal critical information and bypass sanctions.
### Enhanced Monitoring Efforts by the MSMT
The MSMT, established in October 2024, operates independently from the UN but collaborates closely with multiple member states. It is tasked with monitoring violations of UN Security Council sanctions on North Korea. The team’s findings demonstrate that despite international efforts to isolate North Korea, the regime’s advanced cyber capabilities and use of cryptocurrency continue to fuel its illicit programs.
### Conclusion
North Korea’s use of cryptocurrency laundering, cyber theft, overseas IT labor, and strategic military alliances have made its sanctions evasion tactics increasingly sophisticated. These operations facilitate the ongoing development of WMDs and ballistic missile programs, posing significant challenges to international security and sanction enforcement.
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https://coincentral.com/north-koreas-crypto-operations-exposed-1-65b-funneled-to-wmds/
