North Korea targeting cryptocurrency exchanges

Numbers are constantly changing on the ticker signboards installed on the cryptocurrency exchanges in the Jung district of Seoul on Jan. 12. (by Baek So-ha, staff photographer)

NIS reports that a US$530 million theft last month was likely the work of NK hackers

North Korean hackers are still trying to steal cryptocurrency in addition to tens of millions of dollars’ worth of cryptocurrency that was recently stolen from a South Korean exchange, South Korea’s National Intelligence Service (NIS) reported to the National Assembly on Dec. 5.

“Last year, North Korea sent phishing emails to cryptocurrency exchanges and members of those exchanges and stole the passwords of a significant number of members,” the NIS was quoted as saying during a plenary session of the National Assembly’s Intelligence Committee by Kim Byeong-gi, a lawmaker with the Democratic Party who is a senior member of the committee.

“It was also confirmed that North Korea used technology that neutralizes the antivirus software of a well-known South Korean company and sent phishing emails under the guise of job applications, taking advantage of the fact that cryptocurrency companies regularly hire new employees. Apparently, the situation is even more serious than is generally thought,” Kim said.

The NIS also told the Intelligence Committee about suspicions that the theft of 58 billion yen (US$530 million) worth of cryptocurrency last month from Coincheck, a Japanese cryptocurrency exchange, was the work of North Korean hackers, according to people who attended the meeting. One person at the meeting said that the South Korean government was unwilling to say whether North Korea was behind the Coincheck heist before the Japanese government made its own announcement. The NIS denied that this was true, however.

Kim Jong-gak, new Director of the General Political Bureau

The NIS also reported to the Intelligence Committee that “North Korea’s inspection of the General Political Bureau of the Korean People’s Army is presumed to have resulted in the dismissal of Hwang Pyong-so from his post as bureau director and his assignment to ideological education at the Higher Party School, while a number of senior officials have been dismissed or executed, including bureau deputy director Kim Won-Hong, who was relieved of his duties and struck from the rolls of the Korean Workers’ Party.”

“Starting in October of last year, the Organization and Guidance Department of the North Korean Workers’ Party carried out a three-month inspection of the General Political Bureau of the Korean People’s Army,” said Kang Seok-ho, a lawmaker from the Liberty Korea Party and the chair of the Intelligence Committee.

“Kim Jong-gak, former First Vice Minister of the Ministry of People's Armed Forces, appears to have been named [Director of the General Political Bureau] to replace Hwang Pyong-so, while Son Chol-ju has been named deputy director of organization and Ri Du-song deputy director of propaganda,” Kang said.

“The string of sanctions against North Korea have suspended exports of coal, seafood and toll-processing textiles, causing the North’s volume of trade with China to plummet. As of the end of 2017, North Korea had a US$1.96 billion trade deficit with China, its largest deficit ever,” the NIS reported.

“If UN Resolutions including No. 2397 are strictly implemented, North Korea’s foreign currency earnings this year could fall to less than half of their level in 2016, before the sanctions against North Korea were ramped up.”

The NIS also addressed the military parade planned for Feb. 8, North Korean People’s Army Foundation Day. “Since early December, North Korea has mobilized more than 12,000 soldiers and 160 pieces of equipment at Mirim Airport (Pyongyang East Airfield) outside Pyongyang to prepare for the military parade. We’re keeping a close eye on this because various missiles may also be unveiled during the parade,” the NIS said.

“The third tunnel at Punggye Village [North Korea’s nuclear test site] is always ready to carry out a nuclear test,” the NIS added.

By Kim Kyu-nam and Jung Yu-gyung, staff reporters

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