Pyongyang’s regime funnels stolen virtual assets through organized crime channels to fund weapons programs, per a UK think tank report.
North Korea has laundered at least $2.8 billion in stolen cryptocurrency since January 2024, routing funds through established criminal networks. The process obscures the origin of assets, blending them with proceeds from investment scams and other illicit activities.
The Royal United Services Institute (RUSI) report highlights third-party buyers purchasing stolen coins at discounts or mixing them with scam-related funds. Money mules in the Philippines, Indonesia, and China facilitate cash conversions, leveraging cheaply acquired credentials.
The stolen assets are believed to support North Korea’s weapons development, with investigators tracing transactions to entities like Cambodia’s Huione Group. The shift toward criminal networks complicates tracking efforts.