In an era marked by rapid digitalization, key sectors such as banking, education, healthcare, and even everyday human interaction have undergone a profound shift. Notably, there has been a push for cryptocurrency to be used instead of hard money, with El Salvador and the Central African Republic now accepting Bitcoin as legal tender. However, like many aspects of technology, cryptocurrency does not always materialize as expected. For one, there is the possibility of sending digital currency to the wrong person. There is also the potential for cryptocurrency to be hacked. In 2022, over $3.8 billion USD worth of cryptocurrency was stolen from users globally. 

Disconcertingly, this issue extends beyond individuals, with state-sponsored entities also engaging in cryptocurrency theft. North Korea, a country that has been referred to as a “hermit kingdom” due to its secretive nature, has been stealing cryptocurrency to support its nuclear and ballistic missile programs and to fund the lavish lifestyle of the Kim Jong Un regime. By utilizing a “shadow army” of hackers, North Korea has orchestrated cyber operations that target digital platforms. Last September, the country stole approximately $41 million USD in cryptocurrency from Stake.com, an online casino and sports betting site. In the past five years alone, North Korea has stolen over $3 billion USD worth of cryptocurrency. 

Amidst a backdrop of widespread starvation claiming the lives of millions and a government known for its suppression of human rights, Kim stands out for his extravagant way of life. Just this month, Japanese authorities thwarted an effort to smuggle a $70,000 USD Lexus into North Korea. Although the United Nations has imposed sanctions that make it illegal to export luxury vehicles and other luxury items to the country, Kim has been seen in foreign luxury vehicles. North Korea has attempted to circumvent US sanctions by employing Alejandro Cao de Benós, a Spaniard who was arrested last month in Madrid for helping North Korea evade sanctions by using cryptocurrency. 

As a response to North Korea’s cyber threats, including its theft of cryptocurrency, Japan, South Korea, and the United States have established a new trilateral initiative. North Korea’s funding of its nuclear and ballistic missile programs is not the only security concern, as it has also launched a spy satellite into orbit and plans to launch more in the near future. This expanding repertoire of security challenges funded by stolen cryptocurrency emphasizes the need for an international response. Otherwise, the risks associated with stolen cryptocurrency will persist, jeopardizing not only regional stability but global security as well.