THE NORTH KOREAN MISSILE program has developed rapidly in the past year, partly due to an influx of stolen cryptocurrency, which has now become “an important revenue source” for Pyongyang, according to a United Nations report.
The confidential report was produced for
the United Nations’ Security Council, by a committee tasked with
monitoring the impact of the supranational body’s sanctions on the North
Korean economy.
The United Nations imposed sanctions on
North Korea in 2006, in response to its announcement that it possessed
nuclear weapons. These sanctions have increased over the years, as
Pyongyang has continued to advance its nuclear and ballistic missile
programs. The sanctions have targeted the communist country’s export
industry sectors, including fisheries, textiles, raw materials such as
iron, lead and coal, as well as refined energy products.
Now a new report, produced for the United
Nations Security Council, suggests that, not only have the sanctions
failed to degrade Pyongyang’s nuclear and missile weapons programs, but
that the latter actually saw a “marked acceleration” in 2021. The report
was delivered last week to the United Nations Security Council by a
committee tasked with monitoring the effects of international sanctions
on North Korea. According
to the Reuters news agency, which accessed the confidential report, it
states that North Korea has been able to demonstrate “increased
capabilities for rapid deployment, wide mobility (including at sea), and
improved resilience of its missile forces”.
Much of this ability comes from funding
derived through “cyberattacks, particularly on cryptocurrency assets”,
which have now become “an important revenue source” for the North Korean
government. These cyberattacks are conducted by North Korean hackers,
who regularly target “financial institutions, cryptocurrency firms and
exchanges”. According to the report, North Korean hackers were recently
able to steal cryptocurrency valued at over $50 million, by attacking
just three cryptocurrency exchanges in a period of just 18 months.
The United Nations report comes in the heels of another report,
published last month by cybersecurity firm Chainalysis, which alleged
that Pyongyang was able to acquire digital assets worth nearly $400
million in 2021 alone. That made 2021 one of the most successful years
for North Korean government-sponsored hackers, according to the report.
To this one must add cyberattacks that do not target cryptocurrency,
which also generate foreign cash supplies for the North Korean
government. These generate several hundred million dollars each year,
according to research.
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