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Home»Regulation»South Korea partners with US to combat crypto heists and efforts by North Korea-linked hackers: report
South Korea partners with US to combat crypto heists and efforts by North Korea-linked hackers: report
Regulation

South Korea partners with US to combat crypto heists and efforts by North Korea-linked hackers: report

2024-12-25No Comments2 Mins Read
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The United States and South Korea are reportedly working together in a joint research initiative aimed at strengthening protection against theft of crypto assets.

According to a report from the Yonhap News Agency, the US Department of Homeland Security and the government of South Korea have signed an agreement to jointly develop technologies aimed at curbing attacks on crypto platforms and infrastructure and tracking stolen crypto -assets.

US and South Korean investigators will also focus on how stolen financial assets are laundered or converted into crypto assets using illegal ransomware or other techniques.

According to the Yonhap News Agency, the US singled out South Korea for its joint efforts in crypto assets, as neighboring country and geopolitical rival North Korea is seen as a major perpetrator of crypto heists. For example, in August 2022, blockchain analytics platform Chainalysis said that North Korea was responsible for the most crypto heists that occurred via decentralized finance (DeFi) protocols.

“Much of the value stolen from decentralized finance (DeFi) protocols can be attributed to bad actors linked to North Korea, particularly elite hacking units like the Lazarus Group. We estimate that so far in 2022, North Korea-affiliated groups have stolen approximately $1 billion in cryptocurrency from DeFi protocols.”

Earlier this year, a member of a United Nations expert panel tasked with monitoring sanctions against North Korea reportedly disclosed that the hermit state is using the crypto mixer Tornado Cash to launder stolen crypto assets. The hermit state is said to use the proceeds from its crypto heists to fund its nuclear and missile programs.

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