South Korea Looks to Freeze North Korea’s Crypto Assets

According to local news outlet, Korea JoongAng Daily, the South Korean government is planning to put forward a bill that would see the tracking and freezing of North Korea’s cryptocurrency assets being used to fund Pyongyang’s weapons programs. 

An original version of the bill was reportedly presented in November before being pulled back for revisions by Presidential decree. 

Some 10 months later, the new bill is expected to include additions/changes based on a long period of consultation with various government ministries in the country. An insider with ‘in-depth knowledge’ has reportedly said that the bill is now designed to “track and neutralize virtual coins and other cryptocurrency assets stolen by the North through hacking,”

North Korea’s History of Crypto-Hacks

North Korea, and in particular the Lazarus hacker group, have been attributed to an ever-growing list of cryptocurrency attacks and hacks with blockchain data company, Chainalysis, ascribing some $3 billion in stolen funds to the country in the last 5 years.

South Korean intelligence also reports some $1.7 billion in crypto stolen in 2022 alone. In particular, through Bitcoin and Ethereum. 

“The growth in Pyongyang’s haul from cyber crime has corresponded with a sharp rise in missile tests by the regime, which launched over 90 cruise and ballistic missiles last year and conducted its first successful test of a solid-fuel intercontinental ballistic missile in April.”, reads the article