The United States is intensifying its efforts to dismantle a global criminal network accused of using stolen cryptocurrency to finance North Korea’s nuclear weapons programme, with a high-profile trial and new sanctions forming the latest offensive.
At the heart of the US crackdown is the notorious Lazarus Group, a hacking collective long suspected of stealing billions of dollars in digital assets to fund the regime in Pyongyang. US prosecutors allege the group was behind a $620 million cryptocurrency theft in 2022, which they intend to spotlight in the upcoming trial of Roman Storm, co-founder of the crypto-mixing service Tornado Cash.
Tornado Cash is accused of obscuring the origins of criminal funds, with US authorities claiming it facilitated the laundering of over $1 billion, including assets stolen by Lazarus. Prosecutors say the stolen funds were funneled through crypto wallets linked to the North Korean group, which has been under US sanctions since 2019.
In court filings, Storm’s legal team is pushing to exclude all references to the Lazarus Group, arguing that their client has not been charged with hacking or shown to have any ties to the North Korean hackers. Storm, who has pleaded not guilty, is scheduled to face trial this month. A co-founder, Roman Semenov, has also been charged but remains at large.
The Lazarus Group has previously been blamed for several high-profile cyberattacks, including the $81 million theft from Bangladesh’s central bank, the WannaCry ransomware outbreak, and the Sony Pictures hack in retaliation for the film The Interview.
Beyond the courtroom, the US Treasury has blacklisted the Cambodia-based Huione Group, a financial conglomerate accused of laundering $4 billion in stolen cryptocurrency for Lazarus. The Treasury’s Financial Crimes Enforcement Network (FinCEN) said it would sever Huione’s access to the US financial system, calling it a “critical node” for North Korea’s cybercriminal operations.
“Lazarus Group has repeatedly victimised both users and developers of digital assets to fund the DPRK regime’s malign activities,” the US Justice Department said in a statement.
According to the Center for Strategic and International Studies, North Korea stole a record $1.34 billion in cryptocurrency in 2023, fueling growing fears that the regime is funding its weapons of mass destruction (WMD) and ballistic missile programmes through digital heists.
North Korea is now considered one of the most aggressive state actors in the global cybercrime landscape, alongside Russia, China, and Iran. The US continues to treat it as a top-tier cyber threat, with law enforcement and intelligence agencies coordinating to disrupt its growing digital finance operations.
