According to a report by local media organization Korea JoongAng Daily, South Korea is preparing a law proposal to track and freeze the cryptocurrencies and other virtual assets used by North Korea.
Proposal Prepared After 10 Months of Consultations
Korea JoongAng Daily, citing multiple government sources, reported that the law proposal, which aims to cut off the financing of Pyongyang’s weapons programs, was the result of 10 months of consultations among various South Korean government agencies. The sources also mentioned that President Yoon Suk Yeol instructed the proposal to be revised to include practical measures that would support national security before its submission, and it is expected that the proposal will be added to the existing sanctions against North Korea.
A government official, speaking to Korea JoongAng Daily, stated that the South Korean President believes that the country’s cybersecurity framework needs urgent repair, while another official stated that the latest law proposal details measures to track and neutralize stolen virtual currencies and other cryptocurrencies carried out by North Korea through hacking attacks.
Hacking Attacks Carried out by North Korea
According to local media organization Asia Today, last month the South Korean National Intelligence Service disclosed that North Korean computer hackers conducted illegal cryptocurrency hacks worth $180 million in the first half of this year.
Citing South Korean intelligence, Korea JoongAng Daily reported that North Korea stole $1.28 billion worth of Bitcoin (BTC) and Ethereum (ETH) through hacking attacks only last year.
The North Korean hacking organization Lazarus Group is among the most wanted suspects in numerous hacking incidents related to cryptocurrencies. CoinsPaid, a cryptocurrency payment processor affiliated with Alphapo, announced in July that it was hit by a $37 million hack attack and suspected Lazarus Group as the perpetrator.
