Saturday, 30 September 2023

Crypto News

South Korea plans to submit bill to freeze North’s crypto assets: Report

South Korea plans to submit bill to freeze North's crypto assets: Report

The government of South Korea is reportedly planning to submit a bill that will track and freeze North Korean crypto and virtual assets that are used to fund its capital Pyongyang’s illicit weapons program. 

According to a report by local media outlet JoongAng Daily, multiple anonymous government sources confirmed on Aug. 3 that the bill is in the works. A government official who remained anonymous reportedly said that the bill will reflect the country’s president’s beliefs that its cybersecurity framework needs to be repaired, the report said.

Another unnamed source who works in the administration said that the bill’s latest version contains ways to “track and neutralize” crypto and other virtual assets stolen by North Korea through hacks and exploits. According to the report, this was not included in the initial bill proposed by the National Intelligence Service (NIS) back in November 2022. 

Apart from the new cybersecurity bill, the administration is also reportedly planning on creating a national cybersecurity committee under the direct control of the president. The committee enforces various measures to enhance the country’s defenses against hacking attempts by foreign entities.

According to the report, this committee will be headed by the National Security Office’s chief and will include the NIS director.

Related: South Korea sets independent sanctions for crypto theft against North Korea

North Korean hackers have stolen a large amount of digital assets from numerous victims through different exploits. On Aug. 18, Blockchain intelligence firm TRM Labs estimated that around $2 billion was lost to North Korean cyberattacks since 2018. The data shows that in 2023 alone, North Korea was responsible for the theft of $200 million worth of crypto, which is 20% of all the stolen funds this year.

Meanwhile, the United States Federal Bureau of Investigation (FBI) is also making an effort to track the state-backed hackers of North Korea. On Aug. 23, the FBI flagged six Bitcoin wallets connected to the North Korean hacking group Lazarus. The wallets had 1,580 Bitcoin (BTC) worth $40 million, which are believed to be consolidated from various hacks.

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