South Korea Sanctions North Korean Individuals and Entity Over Crypto Heists

The South Korean government has imposed sanctions on 15 individuals and one entity from North Korea for engaging in illicit cyber activities, including cryptocurrency thefts.

The sanctioned individuals are reportedly linked to Bureau 313, an organization under the Workers’ Party of Korea’s Machine-Building Industry Department, which oversees weapons production and ballistic missile programs.

The department has been under UN sanctions since 2016, according to a statement from South Korea’s Ministry of Foreign Affairs.

North Korean IT Professionals Seek to Secure Contracts with Global IT Firms

The Ministry revealed that North Korean IT professionals, often deployed to countries like China, Russia, and Southeast Asia, work undercover to secure contracts with global IT firms.

Some of these individuals are involved in information theft and cyberattacks.

Among the sanctioned individuals, Kim Cheol-min was identified for infiltrating IT companies in the U.S. and Canada, transferring substantial funds to Pyongyang.

South Korea also sanctioned a North Korean entity responsible for sending IT personnel abroad and remitting significant amounts of foreign currency to support the regime and its military activities.

The move follows increasing evidence of North Korean involvement in major cryptocurrency hacks.

On Monday, the FBI attributed a $308 million theft from Japan-based crypto exchange DMM Bitcoin to North Korean hackers, a breach that led to the exchange’s closure.

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North Korean hacking group pull off $307M crypto heist from the Japan-based exchange DMM Bitcoin.

The TraderTraitor group stole bitcoins worth about 48.2 billion yen ($307 million) from crypto-asset exchange service provider DMM Bitcoin in May, the National… pic.twitter.com/HmGc4TorrW

— Stacy (@PaTrumpGirl) December 24, 2024

Last week, the U.S. Treasury Department imposed similar sanctions on individuals and an entity laundering cryptocurrencies for North Korea through a front company in the UAE.

According to blockchain analytics firm Chainalysis, North Korean hackers stole $1.34 billion worth of cryptocurrency across 47 incidents in 2024, representing 61% of global crypto theft for the year.

The report noted the increased sophistication of North Korean IT workers, who use tactics such as false identities, third-party hiring intermediaries, and remote work opportunities to infiltrate crypto and Web3 companies.

South Korea’s Crypto Investors Cross 15 Million

As reported, South Korea’s cryptocurrency investors crossed 15 million in November.

According to figures submitted by the Bank of Korea, 15.59 million South Koreans held accounts on the nation’s top five cryptocurrency exchanges by the end of November.

Deposits in crypto exchanges also doubled, rising from 4.7 trillion won ($3.2 billion) in October to 8.8 trillion won ($6.03 billion) in November.

The growing adoption of digital assets in South Korea comes as a recent survey revealed that most young South Koreans are losing faith in the national pension system, with many stating they see crypto and stocks as a better alternative.

The study found that more than three-quarters of people aged 20-39 “don’t trust” state-issued pensions.

Over half of respondents who said they were making their own pension plans claimed they were building their retirement funds with stocks and crypto.

Source: cryptonews.com