Rising Cyber Threats and Billions in Stolen Crypto Prompt International Concern
Leaders from the Group of Seven (G7) nations are expected to raise concerns over North Korea’s escalating cyberattacks and cryptocurrency thefts during the upcoming summit in Alberta, Canada, scheduled for mid-June, according to a May 7 Bloomberg report.
While ongoing global conflicts — particularly in Ukraine and Gaza — will dominate the agenda, sources familiar with the matter say that North Korea’s state-sponsored cybercrime is emerging as a top-tier international security issue.
“The regime’s use of stolen crypto as a funding mechanism for weapons programs is deeply concerning,” one source reportedly stated.
Lazarus Group and North Korea’s Expanding Cyber Operations
North Korea-affiliated hacking collectives like the Lazarus Group have stolen billions in crypto assets this year alone. In February, Lazarus pulled off the largest crypto hack in history, stealing $1.4 billion from crypto exchange Bybit.
According to Chainalysis, North Korean hackers have been responsible for at least 47 separate crypto heists in 2024, amounting to over $1.3 billion in stolen funds. The U.S., Japan, and South Korea jointly warned in January that North Korea is also deploying IT workers into crypto firms to act as insider threats.
A U.S. Treasury report from September 2024 noted that illicit crypto proceeds are being used by the regime to evade international sanctions and fund its weapons development programs.
Malware, Shell Companies, and Social Engineering
In April, a subgroup of Lazarus established three shell companies — including two in the United States — to distribute malware disguised as job opportunities, targeting crypto developers and investors.
Earlier this month, Kraken, a major U.S. crypto exchange, disclosed that it had foiled a North Korean hacking attempt. The attacker had posed as a job applicant in a technical interview but failed identity verification trap tests, confirming the deception.
“State-sponsored attacks aren’t just a crypto issue — they’re a global threat,” said Kraken CSO Nick Percoco.
Freelance Networks as Entry Points
Cyber threat intelligence experts have also uncovered how North Korean operatives secure freelance tech work to access sensitive crypto infrastructure. In February, researcher Heiner Garcia conducted a dummy job interview with a suspected North Korean operative, who inadvertently revealed ties to known crypto fraud operations.
Final Thoughts: G7 Seeks Unified Response to Crypto-Enabled Threats
As North Korea ramps up its use of crypto as a tool to bypass sanctions and fund its military ambitions, G7 nations may use the upcoming summit to push for a coordinated international crackdown on state-sponsored cybercrime.
Whether through stricter AML/KYC enforcement, better blockchain intelligence sharing, or targeted sanctions, world leaders now recognize that cybersecurity and crypto policy are deeply intertwined in the modern geopolitical landscape.
