The United Nations (UN) has accused North Korea of stealing cryptocurrencies worth millions of dollars. Moreover, the report adds that the totalitarian Asian state used the stolen assets to fund missile and nuclear experiments.
Crypto Fuels Weapon Trials
According to a recent UN report cited by Reuters, North Korean hackers have carried out numerous attacks against at least three cryptocurrency exchanges between 2020 and mid-2021. The bad actors stole around $50 million worth of digital assets.
Last month, analytics firm – Chainalysis – went further, claiming that hackers had embezzled more than $400 million in 2021. The perpetrators mainly targeted investment firms and centralized exchanges with various tactics including malware, phishing and social engineering.
Bitcoin accounted for approximately 20% of the stolen funds, while Ether made up more than half of the total loot with 58%. The remaining 22% belonged to other altcoins and ERC-20 tokens.
The UN pointed out that North Korea had launched nine ballistic missile experiments in January alone, the most tests in the country’s weapons history conducted in a single month. The international organization maintained that the stolen digital assets funded these programs.
The UN Security Council urged North Korea to cease such experiments numerous times. Despite the crippling sanctions and the warnings, Pyongyang has continued to develop its nuclear and ballistic missile infrastructure:
“The DPRK has demonstrated increased rapid deployment capabilities, high mobility (including at sea) and improved resilience of its missile forces.”
China and Russia refused to sign the statement accusing North Korea of launching its missile trials.
Can crypto prevent nuclear wars?
The escalation of the conflict between Russia and Ukraine and disturbing rumors that North Korea has advanced with its missile programs are warning signs that world peace may be under threat. Bearing in mind recent scientific achievements and the acceleration of the arms industry, it is reasonable to assume that nuclear attacks could play a crucial role in an eventual war.
More than a year ago, though, the Centre for Science and Security Studies (CSSS) argued that blockchain technology could enhance the trust between nations and even dismantle warheads.
Specifically, the backbone of the cryptocurrency industry allows authorized participants to “collectively manage encrypted data without a central authority.” Thus, the information becomes transparent, creating a “technical basis for cooperation between non-trusting parties”.
Put simply, the CSSS assumed that blockchain technology could reduce the risks of potential wars.
