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South Korea has partnered with the US to combat crypto crime, cyberattacks, and hacks from online fiends such as North Korean hackers.
According to local media, the US Department of Homeland Security and the South Korean government are collaborating on advanced technologies to prevent cyberattacks on crypto platforms, enhance infrastructure security, and improve tracking of stolen digital assets.
The research will also investigate methods used to launder stolen funds or convert them into cryptocurrencies, often facilitated by ransomware.
Specifically, South Korea's concerns stem from its proximity to North Korea. The country's Lazarus Group is believed to have stolen $900 million in 2024 alone, according to the US government.
Most recently, decentralized exchange Hyperliquid denied being hacked by Lazarus Group despite $476K in suspicious ETH transactions, triggering $60M in user withdrawals.
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North Korea also reportedly uses tools like Tornado Cash to obscure the origins of stolen funds, which are believed to fund the country’s nuclear and missile programs.
Last month, a federal appeals court has ruled that US sanctions imposed on Tornado Cash must be lifted. The ruling challenges the Treasury Department's use of sanctions to target technology that anonymizes crypto transactions and reverses an August district court ruling that labelled Tornado Cash a “notorious” crypto-mixing tool and upheld the government's stance against its service.
The Treasury claimed that Tornado Cash facilitates illicit activities, such as money laundering by groups like Lazarus Group. However, the Court of Appeals found that its smart contracts are not property of any foreign national.
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