South Korea may reconsider its sanctions approach toward North Korea after new US measures connected Pyongyang’s crypto theft operations to the funding of its weapons programs.
“In cases of cryptocurrency theft by Pyongyang, coordination between South Korea and the US is important, as it can be used to fund North Korea’s nuclear and missile programs and pose a threat to our digital ecosystem,” Kim stated.
Among them were the Korea Mangyongdae Computer Technology Company (KMCTC) and Ryujong Credit Bank, both alleged to have funneled illicit digital funds to finance weapons development. Treasury officials identified KMCTC president U Yong Su, as well as Jang Kuk Chol and Ho Jong Son, as central figures in laundering operations tied to ransomware and fraud schemes.
Her comments followed the US Treasury Department’s latest sanctions against eight North Korean nationals and two entities accused of laundering stolen cryptocurrency.
The renewed scrutiny underscores Seoul’s intent to align with Washington on countering North Korea’s cyber operations, which remain a persistent source of illicit funding for its weapons ambitions.
“Since then, small-scale sanctions have continued to be imposed,” Yoon said, adding that while further actions are likely, their economic impact may remain limited. “This has been happening for decades,” he noted.
Global law enforcement is responding. The US Department of Justice recently moved to seize over $7.7 million in digital assets tied to North Korean IT workers embedded in blockchain firms. Meanwhile, the US and South Korea signed a bilateral agreement in 2023 to enhance their technical capabilities in detecting and countering DPRK cyber operations.
North Korea has also been linked to several other major crypto heists, including those targeting Bybit, the Ronin Bridge, Harmony, and various DeFi platforms.
