North Korean hackers charged in US over $1.3bn theft scheme

Published
0
The first action against Pyongyang by President Joe Biden’s administration took aim at what the department called “a global campaign of criminality” being waged by North Korea. — Reuters/file
The first action against Pyongyang by President Joe Biden’s administration took aim at what the department called “a global campaign of criminality” being waged by North Korea. — Reuters/file

WASHINGTON: The US Justice Department charged three North Korean military intelligence officials on Wednesday in a campaign of cyberattacks to steal $1.3 billion in crypto and traditional currencies from banks and other targets.

The first action against Pyongyang by President Joe Biden’s administration took aim at what the department called “a global campaign of criminality” being waged by North Korea.

The department accused the three of a wide-ranging hacking and malware operation to obtain funds for their government while avoiding punishing UN sanctions that have cinched off its sources of income.

Over at least seven years, the officials created malicious cryptocurrency applications that opened back doors into targets’ computers; hacked into companies marketing and trading digital currencies like bitcoin; and developed a blockchain platform to evade sanctions and secretly raise funds, the department said.

In 2018, these hackers stole $6.1m from a Pakistani bank’s ATM machines after gaining access to its computer network

The case filed in federal court in Los Angeles builds on 2018 charges against one of the three, identified as Park Jin Hyok.

He was charged with the 2014 hack of Sony pictures, the creation of the notorious WannaCry ransomware, and the 2016 theft of $81 million from the central bank of Bangladesh.

The new charges added two defendants, Jon Chang Hyok and Kim Il.

The allegations said the three worked together in the North Korean military intelligence’s hacking-focused Reconnaissance General Bureau, better known within the cybersecurity community as the Lazarus Group, or APT 38.

In addition to the earlier charges, the three allegedly operated out of North Korea, Russia and China to hack computers using spearfishing techniques, and to promote cryptocurrency applications loaded with malicious software that allowed them to empty victims’ crypto wallets.

They allegedly robbed digital currency exchanges in Slovenia and Indonesia and extorted a New York exchange of $11.8 million.

In a 2018 scheme, they robbed $6.1 million from ATM machines from a Pakistani bank after gaining access to its computer network.

The Justice Department did not specify exactly how much it believed the defendants have stolen altogether.

‘Keyboards instead of guns’

In addition, the charges said, Kim Il developed the blockchain-based digital currency-like “Marine Chain Token” which ostensibly was an instrument for investors to buy shares of shipping vessels.

He marketed opportunities to invest in the scheme in Singapore, without telling potential investors that it was mainly designed to hide ship ownership identities to help North Korea avoid sanctions, the charges said.

All of the actions, the Justice Department said, were to “further the strategic and financial interests of the (North Korean) government and its leader, Kim Jong Un”.

Published in Dawn, February 19th, 2021

Opinion

Editorial

Muddled hierarchy
Updated 15 Nov, 2026

Muddled hierarchy

The jurisdiction of the two courts and a mechanism for settling disputes between them should be spelt out in law, not left to judges to fight over.
Growing crisis
Updated 15 Nov, 2026

Growing crisis

Calling population growth a national emergency is easy. Ensuring that the response reaches the people who need it is the real challenge.
Organised rackets
15 Nov, 2026

Organised rackets

ON the International Day against Transnational Organised Crime, observed today, Pakistan finds itself in a tight...
Referendum talk
Updated 14 Nov, 2026

Referendum talk

Unless the PPP is deliberately using Sindh as a bargaining chip, it should issue a clarification with a clear, consistent position on new administrative units, not one tailored to protect its home turf.
Mineral wealth
Updated 14 Nov, 2026

Mineral wealth

Minerals should not be presented as a solution to Pakistan’s long-term economic difficulties. The aim should be to build an industrial base rather than export raw materials.
Late diagnosis
14 Nov, 2026

Late diagnosis

AS we mark World Diabetes Day today, Pakistan faces a troubling question: how many people are living with diabetes...