North Korea. The first day that you hear that name, what do you think of? Nuclear missiles? Kim Jong-un? Probably not "cutting-edge cybersecurity threat." That’s exactly what they are — and it’s costing us all a lot more than we think. We're talking about a billion-dollar-plus problem – a problem that's quietly funding a regime that destabilizes the world. Think of it like this: you meticulously curate your investments, planning for the future. North Korea goes to great lengths to design its cyber heists, designing for… you know… a future that endangers yours.

Stolen Crypto Fuels Missiles

Chainalysis data doesn't lie. More than $1.3 billion absconded in just 2024 so far across 47 crypto hacks. Let that sink in. That’s not pocket change, it’s a war chest. And what’s it being used for? Not humanitarian aid, that’s for sure. Each one of those stolen Bitcoin means another missile test, another advance towards North Korea acquiring a nuclear-tipped ICBM. The US Treasury has already warned about this, reminding us that illicit crypto money already evades sanctions and directly funds the development of weapons like these.

Imagine the implications. Regional instability in Asia. Increased risk of miscalculation and conflict. All of a sudden, we find that your crypto wallet has a surprisingly direct connection to geopolitical nightmares. And it’s not solely a financial matter, but the actual impact of such significant funding ending up in the wrong hands.

Cryptocurrency's Achilles Heel

Those in the crypto world love to brag about its decentralization and security. If we’re being real – it’s frequently a Wild West. This is to be expected and is not meant as a dig, rather an observation. Unfortunately, the same features that draw some to crypto are exactly what North Korea uses to their advantage. Weak security protocols and lax KYC/AML regulations on certain exchanges are legitimate concerns. Further, they provide an ideal playground for state-sponsored hackers, particularly considering the inherent challenge in tracing transactions.

Picture it as a bank with the vault completely open. You wouldn’t deposit your life savings there, would you. But billions are still finding their way around in a system that’s shown itself to be highly susceptible. The Lazarus Group’s $1.4 billion heist on Bybit, one of the exchanges that supports crypto’s rise, is a prime example. It just shows that no exchange, even the big ones, is safe. This is not a glitch, but rather a design on purpose for the benefit of North Korea.

Insider Threat: The Trojan Horse

Here's where it gets really insidious. North Korea is hacking into the United States and it’s not just from afar – they’re breaking in from the inside. The US, Japan and South Korea have issued alerts regarding North Korean IT workers. These people are either posing as independent contractors or trying to get employed by crypto firms.

These aren’t just talented Ben Affleck-esque coders looking for their next paycheck. They are highly-skilled military-trained operatives whose job it is to penetrate vulnerabilities, plant malware and siphon off money. Kraken even foiled one such attempt. An in-depth investigation by security researcher APT34, who posed as a job candidate to expose the shocking facts. These results showed a suspected operative’s affiliations with North Korea’s cryptocurrency schemes.

This is more than a security threat, this is an intelligence campaign. Those guys are off compiling data, mapping out infrastructures, and setting up a dark web of networks to manipulate however they please.

G7: Talking Shop or Taking Action?

North Korea’s cyber assaults could be on the agenda at the next G7 summit. "Might" is the operative word here. Though Ukraine and Gaza deserve to remain front and center, we cannot afford to overlook North Korea’s cyber threat.

It is overdue for the G7 to show that their words have the power to cause meaningful change. Stricter regulations on cryptocurrency exchanges. Targeted sanctions on North Korean foreign policy officers that oversee cybercrime. Enhanced cybersecurity measures across the board. Will they? Or is it just going to be another cycle of harshly-worded letters and non-committal pledges? The world is watching. We are watching.

Shell Companies: Camouflage and Deception

In April, a group affiliated with Lazarus registered three shell companies. Most shockingly, two of these companies work right here in the US, focusing on malware and scamming crypto developers. This is an example of advanced planning and ingenuity.

They’re not only stealing, but constructing complex alibis to hide their crimes. This takes enormous resources, knowledge, and understanding of Western legal and financial systems. It’s a sobering wake-up call to the commitment and resources North Korea is investing into this black market cash cow.

Beyond the Financial Loss: A Security Risk

The financial losses are significant, no doubt. The actual danger is more wide-ranging and concerns security overall. While the U.S. tries to condemn these nefarious cyber activities, these stolen funds are benefiting Kim Jong-un. They’re emboldening a regime that is undermining international peace and stability.

Each dollar taken from us goes toward making more weapons and expanding our military. It promotes a toxic terrorism-in-spirit ideology. This is more than just protecting your crypto investments. It’s about protecting the home world from a completely unhinged, rogue state that has nuclear weapons.

Time for Action: Demand Accountability

What can you do? Don't be a passive observer. Demand accountability. Urge your elected officials to take action. Support organizations working to combat cybercrime. Know the risks and vulnerabilities of the cryptocurrency ecosystem.

Make no mistake — this is not someone else’s problem, this is our problem. We must accept the scale of the challenge and truly act in unison to meet it. Look past that, and we’re just paying for our own obsolescence, one grifted BTC at a time. We can’t let North Korea’s crypto heists turn into an expensive … and often invisible … weapon of mass disruption.