U.S., Japan, and South Korea Warn Blockchain Industry About DPRK Cyber Threats

The United States, Japan, and South Korea issued a joint warning to the blockchain industry about the ongoing threat posed by North Korean cyber actors targeting cryptocurrency exchanges, custodians, and individuals globally. The announcement, released on January 14, highlights the Democratic People's Republic of Korea’s (DPRK) use of cybercrime to fund its weapons programs, calling it a significant risk to international financial stability.

In 2024 alone, DPRK-affiliated groups, including the Lazarus Group, were linked to major cryptocurrency thefts, including $308 million from DMM Bitcoin, $50 million from Upbit, and $16.13 million from Rain Management. Additionally, the U.S. and South Korea attributed thefts of $235 million from WazirX and $50 million from Radiant Capital to the DPRK.

The statement underscores the rise of sophisticated cyber tactics, such as social engineering and malware deployments like TraderTraitor and AppleJeus. These methods have enabled DPRK hackers to bypass security protocols and compromise global blockchain entities.

Governments Urge Vigilance Against North Korean IT Worker Threat

The three governments also highlighted the insider threat posed by DPRK IT workers infiltrating private sector organizations. Joint advisories, issued as recently as October 2023, warn against inadvertently hiring these operatives, who often disguise their affiliations to access sensitive data.

The U.S., Japan, and South Korea called on blockchain firms and freelance marketplaces to review these advisories to bolster cybersecurity measures. Japan’s Financial Services Agency (FSA), in partnership with the Japan Virtual and Crypto Assets Exchange Association (JVCEA), issued self-inspection requests to crypto businesses in late 2024 to mitigate risks.

Trilateral Collaboration Targets Cybercrime Operations

The trilateral partnership emphasized the importance of public-private collaboration to counter DPRK cyber threats. Initiatives like the Illicit Virtual Asset Notification (IVAN) in the U.S., South Korea-U.S. symposiums, and Japan’s outreach through the JVCEA aim to enhance incident response and information sharing.

The governments also pledged to impose sanctions on DPRK cyber actors and strengthen cybersecurity across the Indo-Pacific region.This joint effort comes amid growing concerns about the DPRK’s reliance on cybercrime to bypass international sanctions and fund its weapons programs.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence before making any trading or investment decisions.

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