North Korea arrests hackers accused of laundering stolen bank funds through crypto

North Korean authorities arrested former military hackers accused of stealing state funds from two banks and laundering the proceeds through cryptocurrency, according to a report by Daily NK citing an anonymous source in Pyongyang.

Inside the Central Bank and Foreign Trade Bank Breach

The suspect group allegedly breached the internal systems of the Central Bank of the DPRK and the Foreign Trade Bank. According to the Daily NK report, the hackers diverted foreign currency and state trade funds directly into overseas cryptocurrency wallets. Investigators detected the operation after noticing discrepancies in foreign-currency payment approvals alongside suspicious overseas internet protocol activity.

North Korea’s National Intelligence Agency subsequently arrested the suspects at a Pyongyang safe house on July 12. While the report could not be independently verified, the alleged methods mirror tactics commonly deployed by state-backed cyber units to launder digital assets globally.

Cross-Border Crypto Laundering Operations

The stolen digital assets followed a complex liquidation route before conversion into traditional fiat currency. According to Daily NK, Chinese brokers converted the crypto assets into U.S. dollars and Chinese yuan. Contacts situated in the border cities of Sinuiju and Hyesan then exchanged the cryptocurrency for physical cash in real time.

To avoid detection by state surveillance, the perpetrators split large fund transfers into minor amounts. They coordinated their movements using encrypted messaging applications, unregistered mobile phones, and specialized Chinese wireless equipment.

FAQ

What banks were targeted in the alleged breach?

The hackers allegedly targeted the Central Bank of the DPRK and the Foreign Trade Bank, according to the Daily NK report.

How were the stolen funds laundered?

The proceeds were moved into overseas crypto wallets, converted into dollars and yuan by Chinese brokers in border cities like Sinuiju and Hyesan, and split into small transactions using encrypted apps.