The South Korean government is reportedly preparing a bill aimed at monitoring and freezing cryptocurrencies and virtual assets utilized by North Korea to fund illegal weapons programs. This move was confirmed by multiple anonymous government sources, according to local media outlet Korea JoongAng Daily on August 3. One unnamed administration official suggested that the bill would reflect the president's concern regarding the need to improve the country's cybersecurity framework.
Another source, employed within the government and speaking on the condition of anonymity, disclosed that the latest version of the bill included provisions to "track and eliminate" cryptocurrencies and other virtual assets pilfered by North Korea through hacks and other illicit means .This particular provision was not part of the original bill proposed by the National Intelligence Service (NIS) in November 2022.
In addition to this cybersecurity bill, reports indicate that the government plans to establish a National Cybersecurity Council, directly overseen by the president. This council will implement various measures to bolster the country's defenses against hacking attempts by foreign entities. According to the reports, the The committee will be led by the director of the National Security Office and include the director of the National Intelligence Service.
North Korean hackers have been responsible for stealing significant amounts of digital assets from various victims by exploiting different vulnerabilities. As of August 18, blockchain intelligence firm TRM Labs estimated that North Korean cyberattacks had resulted in approximately $2 billion in losses since 2018. Data also revealed that North Korea had pilfered $200 million worth of cryptocurrency in 2023 alone, constituting 20% of all stolen funds for the year.
Meanwhile, the FBI has been actively pursuing state-sponsored North Korean hackers. On August 23, the FBI identified six Bitcoin wallets linked to the North Korean hacking group Lazarus, which is suspected to contain the proceeds of various hacks. These wallets h old a total of 1,580 Bitcoins, valued at around $40 million.
