On Wednesday, the U.S. Department of Justice (DOJ) unsealed an indictment
against three intelligence operatives from the Democratic People’s Republic


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Tech & Terrorism: DOJ Indicts North Korean Operatives For Cryptocurrency
Extortion Through Cyberwarfare

(New York, N.Y.) —  On Wednesday, the U.S. Department of Justice (DOJ) unsealed

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an indictment against three intelligence operatives from the Democratic
People’s Republic of Korea (DPRK). The individuals are accused of conspiring to
steal and extort cash and cryptocurrency valued over $1.3 billion from major
banks and global corporations for Pyongyang. The charges underscore North
Korea’s intensified cyberwarfare efforts to illegally obtain currency to
support the regime’s battered cash reserves.

 

As a leading global state-sponsor of terrorism and ferocious human rights
offender, North Korea has been subject tofinancial regulations and
international sanctions
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, forcing the regime to rely on cybertheft for funds to prop up its weapons
program.U.N. reports indicate
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that the regime used hundreds of millions of dollars stolen through
cyberattacks to support itsnuclear and ballistic missile programs
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in 2020.

 

Along with North Korea, numerous terrorist groups, including ISIS
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cryptocurrencies to help fund their terror activities. Cryptocurrencies are
currently subject to minimal oversight, making it an appealing means to bypass
government regulators. In April, the Counter Extremism Project (CEP) and Berlin
Risk published the joint study
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,Cryptocurrencies as Threats to Public Security and Counter Terrorism: Risk
Analysis and Regulatory Challenges, which highlighted the dangers and risks
associated with terrorist groups utilizing cryptocurrency to finance extremist
activities.

 

Funds raised by terrorists and their supporters can be used to purchase
material to support terrorist attacks and to provide other financial support
for the group. Operational support also includes the use of funds to support
terrorist groups on an ongoing basis, including personnel costs as well as
funds for general security and communication. Experience has shown that the
amounts of money in the area of terrorist financing are typically very small
and can easily be disregarded by regulators.

 

To read CEP’s joint study with Berlin Risk, Cryptocurrencies as Threats to
Public Security and Counter Terrorism: Risk Analysis and Regulatory Challenges,
please clickhere
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.

 

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