North Korean authorities have arrested former military hackers accused of stealing state funds from two domestic banks and moving the proceeds through cryptocurrency, according to a report citing sources in Pyongyang.
The arrests took place on July 12 in Pyongyang after officials detected irregularities in foreign-currency payments and overseas IP activity. The group allegedly breached the Central Bank of the DPRK and Foreign Trade Bank, diverted funds, and transferred them to overseas crypto wallets, Daily NK reported, citing an anonymous source. The account could not be independently verified.
Chinese brokers reportedly converted the assets into U.S. dollars and yuan. Contacts in the border cities of Sinuiju and Hyesan then exchanged the crypto for cash, with the group splitting transfers into small amounts and using encrypted apps, unregistered phones and Chinese wireless gear to avoid detection.
North Korean hackers continue to play a major role in global crypto-related crime, but the arrests described here concern internal theft of state bank funds rather than the international exchange hacks that have drawn widespread attention.