South Korea looks to track, freeze crypto used by North Korea in new bill: report

South Korea plans to submit a bill to track and freeze cryptocurrencies and other virtual assets used by North Korea, the Korea JoongAng Daily reported Monday.

The bill, aimed at cutting the funding of Pyongyang’s weapons programs, is the result of 10 months of consultations among various South Korean government agencies, the local media outlet reported, citing multiple government sources with knowledge of the matter.

Administration insiders said that President Yoon Suk Yeol issued instructions to revise the bill to contain “practical measures to bolster national security” before submission, adding that the bill is expected to add to South Korea’s existing sanctions against North Korea.

One government official told the Daily that the South Korean President thought the country’s cybersecurity framework “urgently needs repair” and another administrator said the latest bill details measures to “track and neutralize virtual coins and other cryptocurrency assets stolen by the North through hacking.”

North Korea’s hacks

North Korea’s hackers illegally amassed $180 million in cryptocurrency exploits in the first half of this year, South Korea’s National Intelligence Service said last month, as reported by local media outlet Asia Today.

The Korea JoongAng Daily reported that North Korea stole $1.28 billion worth of bitcoin and ether through hacks last year alone, citing South Korean intelligence.

Lazarus Group, the North Korean hacking organization, is among the most sought-after suspects in numerous crypto-related hacks. CoinsPaid, an entity linked to crypto payments processor Alphapo, disclosed that it suffered a $37 million exploit in July, suspecting Lazarus Group as the culprit of the attack.