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South Korea May Revisit Sanctions on North Korea After US Links Crypto Theft to Weapons Funding

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South Korea might rethink its sanctions method towards North Korea after new US measures related Pyongyang’s crypto theft operations to the funding of its weapons applications.

Key Takeaways:

  • South Korea is weighing a overview of its sanctions coverage after the US linked North Korea’s crypto theft operations to weapons funding.
  • The US Treasury focused eight North Koreans and two entities, together with KMCTC and Ryujong Credit Bank, for laundering stolen crypto.
  • Pyongyang’s cyber ways stay a serious supply of illicit financing for its weapons applications.

In an interview with Yonhap News TV on Thursday, Second Vice Foreign Minister Kim Ji-na mentioned Seoul may “overview sanctions as a measure if they’re actually wanted,” stressing shut coordination with Washington to counter North Korea’s rising cyber and digital threats.

“In circumstances of cryptocurrency theft by Pyongyang, coordination between South Korea and the US is necessary, as it may be used to fund North Korea’s nuclear and missile applications and pose a menace to our digital ecosystem,” Kim acknowledged.

US Targets North Korean Crypto Laundering Network Tied to Weapons Funding

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

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

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

The measures goal DPRK-linked operatives in China and Russia who allegedly managed entrance corporations and accounts used to repatriate proceeds from North Korean IT employees overseas.

According to Ryan Yoon, senior analyst at Tiger Research, the transfer marks a continuation of sanctions that started after North Korea’s 2016 nuclear take a look at.

“Since then, small-scale sanctions have continued to be imposed,” Yoon mentioned, including that whereas additional actions are probably, their financial impression might stay restricted. “This has been taking place for many years,” he famous.

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

North Korea Linked to Major Crypto Hacks

North Korea has additionally been linked to a number of different main crypto heists, together with those targeting Bybit, the Ronin Bridge, Harmony, and numerous DeFi platforms.

Global regulation enforcement is responding. The US Department of Justice not too long ago moved to seize over $7.7 million in digital belongings tied to North Korean IT employees embedded in blockchain corporations.

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

North Korean cyber methods proceed to evolve. In April, Lazarus-linked operatives reportedly arrange US-based shell corporations to distribute malware to crypto builders.

Kraken not too long ago thwarted an infiltration try by a suspected North Korean posing as a job candidate.

The publish South Korea May Revisit Sanctions on North Korea After US Links Crypto Theft to Weapons Funding appeared first on Cryptonews.

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