The United States and South Korea will collaborate to create a stronger defense against cryptocurrency theft. Their joint research efforts aim to prevent attacks on cryptocurrency platforms and develop tracking technologies for stolen cryptocurrencies.
Joint Efforts of the U.S. and South Korea
Earlier this year, the U.S. and South Korea signed a significant agreement. The two countries will focus on preventing the illegal processing of stolen cryptocurrencies through methods such as money laundering and ransomware. Experts expect these efforts to enhance the detection of criminal activities.
Cryptocurrency thefts are particularly organized by state-sponsored groups. A key reason for the U.S. choosing South Korea for this collaboration is North Korea’s involvement in such crimes. According to a report by Chainalysis, North Korea stole approximately $1 billion worth of cryptocurrency from DeFi protocols in 2022.
North Korea’s Role and Cryptocurrency Heists
South Korea emerges as a vital strategic partner in monitoring North Korea’s criminal activities. An expert affiliated with the United Nations stated that North Korea launders stolen cryptocurrencies using platforms like Tornado Cash. Furthermore, it is reported that North Korea uses the cryptocurrencies it obtains to finance its nuclear and missile programs.
The collaboration between the U.S. and South Korea aims to enhance the security of the global cryptocurrency market, not just for these two countries. The technologies developed to prevent attacks on cryptocurrency platforms and monitor criminal activities seek to establish a more robust defense worldwide. This initiative is viewed as one of the steps towards ensuring safer usage of cryptocurrencies in the future.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
