North Korea Detains Hackers for Allegedly Laundering Stolen Bank Funds via Cryptocurrency

North Korean authorities have detained several former military hackers linked to the alleged theft of funds from two state banks, which they reportedly laundered using cryptocurrency.

A report from Daily NK cites an anonymous source stating that the hackers breached the Central Bank of the Democratic People's Republic of Korea and the Foreign Trade Bank, diverting state trade funds and foreign currency to offshore cryptocurrency wallets.

After the heist, the hackers supposedly collaborated with Chinese brokers to convert the cryptocurrency into U.S. dollars and yuan. Cash exchanges were facilitated in border cities like Sinuiju and Hyesan, where they employed tactics such as splitting transactions to avoid detection. They utilized encrypted messaging, unregistered devices, and Chinese telecom services to communicate.

The arrests were made on July 12 by North Korea’s National Intelligence Agency following irregularities in foreign currency payment approvals and suspicious overseas IP activity.

The laundering techniques observed align with established methods used in previous North Korean hacking operations aimed at cashing out stolen cryptocurrency. A multinational report highlighted how Chinese traders are integral in converting stolen cryptocurrency into fiat money.

In a notable incident from 2025, North Korean hackers were reported to have stolen nearly $2 billion in cryptocurrency, with estimates indicating they were responsible for about 76% of crypto hack losses through April 2026, according to TRM Labs.