The United States and South Korea have joined forces in a collaborative effort to enhance protections against the theft of cryptocurrency assets. This joint research initiative, as reported by the Yonhap News Agency, involves the U.S. Department of Homeland Security and the South Korean government working together to develop technologies aimed at preventing attacks on crypto platforms and infrastructure, as well as tracking stolen crypto assets.
Researchers from both countries will also focus on investigating how stolen financial assets are laundered or converted into crypto assets through illegal ransomware or other illicit means. The decision to partner with South Korea was strategic, given its proximity to North Korea, a country identified as a significant perpetrator of crypto heists. In fact, a recent report by Chainalysis revealed that North Korea’s elite hacking units, such as the Lazarus Group, were responsible for a substantial amount of cryptocurrency stolen from decentralized finance (DeFi) protocols in 2022, totaling an estimated $1 billion.
Moreover, a member of a United Nations expert panel monitoring sanctions on North Korea disclosed earlier this year that the hermit state utilizes the crypto mixer Tornado Cash to launder stolen crypto assets. These illicit activities are believed to fund North Korea’s nuclear and missile programs, underscoring the importance of efforts to combat crypto-related crimes.
As the partnership between the United States and South Korea progresses, it aims to bolster cybersecurity measures and advance technological solutions to safeguard the integrity of crypto assets. By combining expertise and resources, both countries are taking proactive steps to address the evolving challenges posed by cyber threats in the digital asset space.
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