The FBI has reported that North Korea was responsible for the theft of around $1.5 billion in virtual assets from a cryptocurrency exchange, marking what is considered the largest heist in history. This amount surpasses the previous record of $1 billion stolen by Saddam Hussein from Iraq’s central bank prior to the 2003 war, highlighting North Korea’s increasing proficiency in cybercrime. The FBI referred to this specific type of North Korean cyber activity as “TraderTraitor” and cautioned that the stolen assets, taken from ByBit, a Dubai-based crypto trading platform, would eventually be converted into currency.
According to an FBI statement, “TraderTraitor actors are moving quickly and have already converted some of the stolen assets into bitcoin and other virtual currencies, which are now spread across thousands of addresses on various blockchains.” The bureau anticipates that these assets will undergo further laundering and ultimately be exchanged for fiat currency, which is a standard government-backed currency not linked to commodities like gold.
North Korea is known to operate a sophisticated cybercrime unit called the Lazarus Group, which has been involved in high-profile thefts believed to finance the regime’s nuclear and ballistic missile programs. In 2024, hackers associated with North Korea reportedly stole over $1.3 billion in cryptocurrency, a record amount, according to a late December report. These thefts occurred over 47 incidents, as noted by the blockchain analysis firm Chainalysis, which highlighted a significant increase from the $660 million stolen in 2023.
Chainalysis stated, “North Korean hackers have gained notoriety for their advanced and persistent techniques, often utilizing sophisticated malware, social engineering, and cryptocurrency theft to support state-sponsored activities and evade international sanctions.” UN officials monitoring sanctions against North Korea believe that the proceeds from numerous cyber-attacks conducted by the regime between 2017 and 2023 were used to enhance its nuclear weapons program.
Despite the challenges posed by sanctions, the COVID-19 pandemic, and natural disasters, Kim Jong-un has overseen notable advancements in North Korea’s ability to target distant locations, including the US mainland. Cybercrime is not the only avenue through which the regime generates foreign currency; Kim’s government has also provided weapons, ammunition, and troops to support Russia’s invasion of Ukraine in exchange for cash and technological expertise.
On Thursday, South Korea’s intelligence agency reported that North Korea had dispatched additional soldiers to Russia, with some now deployed to the frontline in Kursk, alongside approximately 11,000 North Korean troops already believed to be in the Russian border region.