US Treasury: North Korea and Russia Threaten Digital Financial Markets

The U.S. government identified North Korea and Russia as the two major countries threatening the digital financial market.

Brian Nelson, U.S. Treasury Department Under Secretary for Terrorism and Financial Intelligence, stated at a Center for a New American Security (CNAS) seminar on the 19th (local time) that "North Korea relies heavily on virtual currency for the development of weapons of mass destruction (WMD)."

He emphasized, "This constitutes a significant national security threat," adding, "Considering the difficulty of diplomatic engagement with North Korea, blocking such financial flows is very important and meaningful."

Regarding Russia, he pointed out, "Given how many ransomware and darknet attacks target Americans, the threat is clear."

Nelson also referenced the Treasury Department's 'DeFi (Decentralized Finance) Illicit Finance Risk Assessment' report released in April. The report warned that North Korean hackers are illegally acquiring funds by stealing virtual currency through DeFi services, then transferring and laundering it.

He noted, "Cybercriminals, including those from Russia and North Korea, have been actively and aggressively exploiting vulnerabilities," and added, "North Korea is increasingly generating revenue through virtual currency to sustain its regime and develop missiles." He further stated, "Targeting these points can help dismantle the structures that generate criminal profits within the cyber ecosystem."

According to the Treasury Department report, the Lazarus Group, a hacking organization linked to the North Korean government, stole $720 million worth of virtual currency from blockchain video game company Axie Infinity in 2022 and blockchain technology company Harmony in 2020. In response, the U.S. government continues to impose sanctions on groups related to North Korea's cyber hacking activities.

This content was produced with the assistance of AI translation services.