The United States and South Korea are reportedly partnering in a joint research initiative aimed at strengthening protections against the theft of crypto assets.
According to a report by the Yonhap News Agency, the U.S. Department of Homeland Security and the government of South Korea signed an agreement to jointly develop technologies aimed at curbing attacks on crypto platforms and infrastructure as well as tracking stolen crypto assets.
US and South Korean researchers will also focus on how stolen financial assets are laundered or converted into crypto assets using illegal ransomware or other techniques.
Per the Yonhap News Agency, the US picked South Korea for the collaborative effort on crypto assets as the country’s neighbor and geopolitical rival North Korea is viewed as a major perpetrator of crypto heists. In August of 2022, for instance, blockchain analysis platform Chainalysis said that North Korea was responsible for most of the crypto heists happening on decentralized finance (DeFi) protocols.
“Much of the value stolen from decentralized finance (DeFi) protocols can be attributed to bad actors affiliated with North Korea, especially elite hacking units like Lazarus Group. We estimate that so far in 2022, North Korea-affiliated groups have stolen approximately $1 billion of cryptocurrency from DeFi protocols.”
Earlier this year, a member of a United Nations expert panel tasked with the monitoring of sanctions on North Korea reportedly disclosed that the hermit state uses the crypto mixer Tornado Cash to launder stolen crypto assets. The hermit state is said to use the proceeds of its crypto heists to fund its nuclear and missile programs.
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