North Korea: Crypto’s Biggest Loser

By Luke Bencie and Elissa Johnson

With the two trillion-dollar crash of cryptocurrency in 2022, most casual observers would be hard-pressed to find a silver lining. Celebrities such as Tom Brady, Giselle Bundchen, Larry David, and Kevin O’Leary all lost millions from their stock portfolios, but will certainly live to invest another day. However, in the case of one particular investor, the global security community actually celebrated crypto’s demise. That unfortunate “bag holder” is none other than North Korean dictator, Kim Jong-un.

Buried under U.S. and international sanctions since the 1950s, Kim’s Democratic People’s Republic of Korea (DPRK) regime has kept its grip on power thanks to illicit activities such as illegal arms sales, drug trafficking, and cyber hacking. The “Hermit Kingdom” has continued to profit through a series of front companies and shadowy representatives that disguise the end user, as well as the genuine purpose of the transactions. It is a sophisticated criminal enterprise that would make even the savviest of mafia bosses blush.

Recently, North Korea has stepped up its focus on cybercrime to further evade sanctions and enhance Supreme Leader Kim’s personal fortune. To accomplish this mission, the DPRK military recruits top-performing students from its science and technology universities to boost cyber capabilities, while employing the services of outside consultants. North Korea’s primary intelligence service, the Reconnaissance General Bure...