Crypto Crash Jeopardizes North Korea's Plans as Stolen Coins Lose Value

The recent crypto crash may have hurt investors and firms globally, but it has also hurt the pockets of North Korea and its ability to test weapons. With the nosedive in cryptocurrency markets, millions of dollars in funds stolen by North Korean hackers have been wiped out, according to four digital investigators. This threatens a key source of revenue for the isolated nation.

North Korea is reportedly stealing cryptocurrency to help fund its nuclear weapons program, a UN report has found, with investigations underway into cyberattacks. Research firm Chainalysis says hackers affiliated with the reclusive state stole $1.3bn of digital currencies - more than double last year's haul, underlining the importance of this revenue stream to the regime. Some of the thefts involved substantial sums, now significantly devalued.

According to a Chainalysis report, the Democratic People's Republic of Korea (DPRK) held about $170 million in stolen unlaundered cryptocurrency from 49 hacks. These old, unlaundered North Korean crypto holdings are monitored by the New York-based blockchain analytics firm Chainalysis, including funds stolen in 49 hacks from 2025 onwards.

North Korea-linked cryptocurrency hacks totaled $3 billion between 20**, South Korean news agency Yonhap reported on Thursday, citing a United Nations investigation. North Korean groups have stolen $1.34bn through cryptocurrency hacks this year alone, their highest level of such thefts on record. The crypto crash significantly diminishes the value of these stolen assets, potentially impacting North Korea's illicit activities and weapons development programs.