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- A report claims that North Korea has arrested former military hackers accused of stealing state funds and laundering them through cryptocurrencies.
- The allegations describe a laundering network that includes offshore cryptocurrency wallets and Chinese OTC brokers.
- The reported methods are similar to techniques previously linked to Pyongyang-backed cybercrime by blockchain investigators.
Investigation centers in the state’s banking system
Citing an anonymous source in Pyongyang. Daily NK reported The suspects infiltrated the internal systems of the DPRK Central Bank and the Foreign Trade Bank, and transferred foreign currency reserves and government trade funds into cryptocurrency wallets controlled outside North Korea.
The country’s National Intelligence Agency arrested the group at a safe house in Pyongyang on July 12 after investigators identified irregularities in foreign currency payment approvals and suspicious online activity abroad, the report said.
Neither the North Korean authorities nor the institutions mentioned in the report have commented publicly on these allegations.
A report describing a cross-border money laundering network
According to Daily NK, the stolen assets were transferred to cryptocurrency wallets abroad before being converted into US dollars and Chinese yuan through brokers operating in China.
The report claimed that middlemen in the border cities of Sinuiju and Hyesan facilitated cash transfers while the suspects broke up the transactions into smaller transfers to reduce detection. It also claimed that the network relied on encrypted messaging platforms, unregistered mobile phones and Chinese wireless equipment to coordinate the movement of funds.
The reported money laundering operation is very similar to methods previously documented by blockchain intelligence firms investigating cyber operations in North Korea.
Cryptocurrency investigators have documented similar techniques
Although the latest claims have not yet been verified, cybersecurity researchers have repeatedly linked North Korean state-sponsored hacking groups to sophisticated cryptocurrency laundering networks.
Investigations by companies, including TRM Labs, have found that stolen digital assets are often routed through decentralized cross-chain protocols before being converted into fiat currency by Chinese over-the-counter brokers. These intermediaries have become a frequent focus of international enforcement efforts aimed at disrupting North Korea’s access to the global financial system.
US authorities also imposed sanctions on individuals and entities accused of helping Pyongyang-linked operators move cryptocurrencies into traditional financial networks.
Cryptocurrency theft remains a major source of revenue
North Korea has become one of the most prolific state-sponsored cryptocurrency hackers in the world.
According to ChainalysisNorth Korean groups stole a record $2 billion in digital assets last year. Separate estimates from TRM Labs found that operators linked to Pyongyang were responsible for 76% of global cryptocurrency losses due to hacks and scams through April 2026, underscoring the country’s continued reliance on cyber operations to generate foreign currency despite international sanctions.
The reported arrests, if confirmed, would be unusual because they involve North Korean authorities targeting individuals accused of diverting state funds rather than conducting cyber operations against foreign organizations.
