North Korean authorities arrested an elite hacking group on July 12 that was accused of breaching the internal networks of the country’s central bank and foreign trade bank, according to South Korean outlet Daily NK.
The group allegedly stole state trade funds and laundered the proceeds through cryptocurrency, ChainCatcher reported, citing Daily NK.
Alleged leader and recruitment
According to sources cited in the report, the group was led by a former member of a cyberwarfare unit under North Korea’s Reconnaissance General Bureau. He allegedly recruited highly skilled IT graduates from Kim Chaek University of Technology and Pyongyang University of Science and Technology. The report said the group used encrypted communications and wireless devices during the operation.
How the funds were moved
Daily NK said the stolen money was broken into smaller amounts and transferred to overseas crypto wallets. From there, intermediaries allegedly converted the assets into cash, which was later exchanged in border areas for U.S. dollars and other funds.
What triggered the investigation
Officials in Pyongyang began looking into the case after detecting irregularities in foreign-currency payment approvals and records showing overseas IP access, the report said. Authorities later raided a safe house, arrested suspects who were allegedly in the process of laundering money, and seized equipment worth hundreds of thousands of U.S. dollars.
Reaction inside North Korea
The case has sent shockwaves through elite and military circles in Pyongyang, according to Daily NK. Senior figures in the Reconnaissance General Bureau as well as the science and technology education sector were said to be concerned about being drawn into the fallout.
The report added that North Korea has long been accused of using hacker organizations such as Lazarus Group to steal billions of dollars in crypto assets. This case, however, was described as unusual because it suggests the country’s own financial system also became a target of an internal attack.