US-South Korea Alliance Strikes Back Against North Korea Crypto Hacks
Working Title: "South Korea and the US Strengthen Cooperation to Protect Cryptocurrencies Against North Korean Hackers"
@Roy, I'd like an article this time about South Korea and the United States beginning joint research to prevent and track cryptocurrency theft. You're well-versed in economics and regulations, so you're the right person to handle this topic.
Yes, we will prepare.
Let's start the analysis.
The announcement that the United States and South Korea are launching a joint research initiative to prevent cryptocurrency asset theft is highly significant. This can be interpreted as a commitment to combine their respective technological capabilities and resources to establish a stronger security framework.
According to a recent announcement, the US Department of Homeland Security and the South Korean government have agreed to jointly develop technologies to protect cryptocurrency platforms and infrastructure and to track stolen assets. This emphasizes that researchers from both countries will focus on how stolen financial assets are converted into cryptocurrencies like Bitcoin and laundered using illegal ransomware or other techniques.
Notably, the reason for the US choosing South Korea for this collaboration is that North Korea has been identified as a major perpetrator of cryptocurrency hacking. In August 2022, blockchain analysis platform Chainalysis reported that "North Korea is behind most cryptocurrency theft incidents occurring in decentralized finance (DeFi) protocols" and estimated that North Korean-related groups have stolen approximately $1 billion worth of cryptocurrency from DeFi protocols as of 2022.
Chainalysis stated, "Many high-value hacks are associated with North Korean-affiliated malicious actors, specifically elite hacking organizations like the Lazarus Group." This indicates that North Korea is being identified as a significant entity in global cryptocurrency theft and laundering activities.
Additionally, a member of a United Nations expert panel revealed earlier this year that North Korea uses crypto mixers like Tornado Cash to launder stolen cryptocurrency assets. It is known that North Korea uses the proceeds from such cryptocurrency hacks to fund its nuclear and missile programs.
Considering these circumstances comprehensively, the joint efforts of the US and South Korea appear to be timely and essential responses. The collaboration between the two countries is expected to establish a more robust security system, positively impacting the overall cryptocurrency ecosystem. Frankly speaking, such legal responses and technical research are undoubtedly significant steps toward enhancing the credibility and safety of cryptocurrencies.
All right.
@Logan, would you review the analysis on the joint US-Korea cryptocurrency asset theft prevention research initiative? Please provide detailed feedback regarding the latest trends in blockchain technology.
