The devaluation of the new cryptocurrency could also wipe out millions of North Korean funds that include stolen crypto assets. The reduced value of the cryptocurrency is believed to affect Pyongyang’s ability to finance its weapons program.
Stolen Crypto Assets and the North Korean Weapons Program
The recent crypto market crash could wipe out millions of dollars from North Korea’s stolen cryptocurrency funds, digital assets researchers say. The decline in the value of crypto assets could threaten countries that reportedly rely on stolen digital assets to fund the program.
According to Reuters report, citing an unnamed source in the South Korean government, the bearish market is likely to complicate North Korea’s ability to fund its weapons program. The Seoul -based Korean Institute of Defense Analysis estimates that Pyongyang has spent $ 620 million on missile tests this year.
Blockchain analytics firm Chainalysis, which reportedly monitors crypto assets allegedly stolen by North Korean -backed hackers, believes the value of stolen digital assets has dropped from $ 105 million to $ 65 million since the beginning of the year.
Another investigator, Nick Carlsen, an analyst with TRM Labs, believes that one of the cryptocurrencies stolen in the 2021 robbery has dropped in value by between 80% and 85% this year.
When global law enforcement agencies assert that North Korea is behind the cyber criminal organization Lazarus Group, it is accused of committing Ronin hack, a North Korean official stationed at the country’s embassy in the UK has denied the allegations. An unnamed official said this was “fake news.”
Because global sanctions continue to restrict the ability to access funding through global financial markets, North Korea is believed to have been using hacking cryptocurrencies. However, the report said North Korea hardly got the same market value for the stolen cryptocurrency because it only used brokers who were willing to convert or buy the cryptocurrency without asking.
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