The surprising effect of North Korean cyber attacks has been named: billions of dollars

UN observers suspect North Korea’s cyberattacks have raised $3 billion to build nuclear weapons. The report suggests that attacks on cryptocurrency-related companies have helped fuel Pyongyang’s weapons program.

UN sanctions monitors are investigating dozens of alleged cyberattacks by North Korea that have raised $3 billion to help it further develop its nuclear weapons program, according to excerpts from an unpublished UN report seen by Reuters news agency.

“The Democratic People’s Republic of Korea (DPRK) continued to violate Security Council sanctions,” a group of independent sanctions monitors told a UN Security Council committee.

“The panel is investigating 58 alleged DPRK cyberattacks on cryptocurrency-related companies between 2017 and 2023, totaling approximately $3 billion, which reportedly help finance the DPRK’s development of weapons of mass destruction,” according to observers who have twice report annually to the Security Council, consisting of 15 members.

North Korea’s mission to the United Nations in New York did not respond to requests for comment on the sanctions monitors’ report. Pyongyang has previously denied accusations of hacking or other cyber attacks, The Guardian recalls.

The UN report was expected to be released this month or early next month, diplomats said.

North Korean hacking groups under Pyongyang’s Foreign Intelligence General Administration reportedly continued to carry out a large number of cyberattacks, sanctions watchers said.

“Trends include North Korea targeting defense companies and supply chains, as well as increasing sharing of infrastructure and tools,” observers said.

North Korea “continued to develop nuclear weapons and produce fissile nuclear materials, although its last known nuclear test took place in 2017,” wrote the observers, who also said Pyongyang continued to launch ballistic missiles, put a satellite into orbit and added to its arsenal.” tactical nuclear attack submarine.”

The 15-member UN Security Council has long banned nuclear tests and ballistic missile launches. Since 2006, North Korea has been subject to UN sanctions, which the Council has repeatedly strengthened in an attempt to cut off funding for the development of weapons of mass destruction (WMD).

Any further Security Council action against North Korea is unlikely as it has been deadlocked on the issue for several years. China and Russia instead want to ease sanctions to persuade Pyongyang to return to denuclearization talks, The Guardian notes.

The isolated country imposed a strict lockdown during the coronavirus pandemic, which has reduced its trade and access to aid, but has begun to recover over the past year.

“Total reported trade volumes in 2023 exceeded the 2022 total, accompanied by the emergence of a wide variety of foreign consumer goods, some of which could be classified as luxury goods,” sanctions watchdogs wrote.

The sale or transfer of luxury goods to North Korea has long been prohibited by the Security Council. Under UN sanctions imposed in 2017, all countries were also required to repatriate North Koreans working abroad to prevent them from earning foreign currency for the state, The Guardian writes.

“The team investigated reports of numerous DPRK nationals working abroad and earning income in violation of sanctions, including in the information technology, restaurant and construction industries,” sanctions watchdogs wrote.

They also said North Korea continues to access the international financial system and engage in illicit financial transactions in violation of UN Security Council resolutions.