Cryptocurrency Crash Threatens North Korea’s Funding for Military Experiments

According to a foreign media, four digital investigators said that the collapse of the cryptocurrency market has wiped out millions of dollars stolen by North Korean hackers, threatening the sanctioned country its key source of funding for its weapons programs.

North Korea has poured in significant resources to stealing cryptocurrency in recent years, making it a potent hacking threat and leading to one of the largest cryptocurrency thefts on record in March, in which nearly $615 million was stolen, according to the U.S. Treasury Department.

The sudden plunge in the value of cryptocurrencies starting in May amid a broader economic slowdown has complexify Pyongyang’s ability to profit from that and all other sorts of thefts, two South Korean government sources said. The sources declined to be named due to the sensitivity of the matter.

Meanwhile, North Korea has tested a record number of missiles at a cost of up to $620 million so far this year, estimated by the Korea Institute for Defense Analysis in Seoul. It is also preparing to resume nuclear tests amid the economic crisis.

North Korea, which is commonly known for its dictatorship, possesses nuclear weapons under the support of the CCP regime. It often conducts missiles, nuclear weapons and other military tests under the command of the CCP to deter neighboring countries. The collapse of cryptocurrencies has also put North Korea’s military funding at risk.