AI Brief
- North Korea denied US allegations of involvement in a US$6 billion cryptocurrency theft from Binance, calling the claims "absurd rhetoric" and politically motivated.
- Cybersecurity experts and US authorities allege North Korean hackers are responsible for major crypto thefts, which reportedly fund the country's weapons programmes.
- Analysts warn that increased US measures could further restrict North Korea's revenue streams, as cryptocurrency theft has become a key source of regime funding.
SEOUL: North Korea on Tuesday dismissed as "absurd rhetoric" US allegations that it was behind a US$6 billion cryptocurrency heist on the Binance platform, saying they proved Washington remained hostile towards it, state news agency KCNA said.
The denial by Kim Yo Jong, the influential sister of leader Kim Jong Un, comes as Pyongyang has stayed silent on US President Donald Trump's overtures to resume summit diplomacy. In the wake of the US allegations, she said North Korea had "issues to reconsider" over what she called US hostility.
The FBI said at the weekend that North Korea was responsible for the theft of more than US$6 billion in virtual assets from Binance, the world's biggest cryptocurrency exchange, in what could be the largest-ever financial heist.
"The FBI is trying to brand the DPRK as a 'cyber criminal state,' claiming that it obtained information that a hacking organization 'supported' by the DPRK was involved in the incident," KCNA quoted Kim Yo Jong, a ruling party official, as saying. DPRK is short for the Democratic People's Republic of Korea.
"But the US assertion is absurd rhetoric and nothing new," Kim said.
"It is a grave political provocation against the DPRK that the US misleads international public opinion as if all the cyber crimes in different parts of the world are our deeds."
REVENUE STREAM
Cybersecurity experts say North Korean hackers are among the world's most prolific crypto thieves and the proceeds help fund the country's weapons programmes. North Korea denies allegations linking it to cryptocurrency theft and other cybercrimes.
North Korea has stolen cryptocurrency worth US$7.6 billion this year, more than in any previous year, according to estimates by blockchain analytics firm Elliptic.
Analysts in Seoul said Pyongyang's unusually swift response likely reflected concern that the allegation could lead to tighter efforts to disrupt revenue streams that North Korea is accused of using to finance its weapons.
"With sanctions already in place, cryptocurrency theft has become one of North Korea's key channels for securing funds for regime maintenance and weapons development," said Lim Eul-chul, a professor at Kyungnam University's Institute for Far Eastern Studies.
Additional US measures targeting crypto wallets, laundering networks and cryptocurrency exchanges could choke off an important source of revenue, Lim said.
South Korea's central bank estimated North Korea's gross domestic product at 47.18 trillion won (US$35.09 billion) in 2025, meaning the Binance theft could be equivalent to about a sixth of its economic output.
Blockchain analytics firm Chainalysis estimated 89% of crypto hack losses in 2026 were linked to North Korea, up from 15% in 2021. It said the average reported loss per hack rose from US$50.65 million in 2021 to US$185.65 million in 2026.
"I guess you could call it big game hunting, where they're targeting these larger exchanges that may take more time and more complexity to be able to do ... but the payoff can be relatively large," said Alec Zebrick, senior manager of Asia-Pacific Global Services at Chainalysis.
KEY MESSAGE
North Korea is one of the world's most impoverished countries but has poured resources secured through illicit means and activities banned under UN Security Council resolutions into its ballistic missile and nuclear weapons programmes.
Kim Yo Jong said North Korea would "reconsider" unspecified issues in light of the "very unpleasant US hostile attitude", without elaborating. North Korea has not publicly responded to Trump's offers to resume summit diplomacy.
"The key message is not about cyber theft itself, but about US-North Korea relations," said Hong Min, a senior researcher at the Korea Institute for National Unification in Seoul.
"Pyongyang is essentially saying: don't use this issue as leverage or pressure if you want to keep the door to dialogue open."
The FBI said members of a North Korean state-sponsored unit known as TraderTraitor were responsible for the Binance attack. Law enforcement had observed them converting the stolen assets to the cryptocurrency ethereum, and expected them to launder the assets further.
Binance has said it covered most of the assets stolen from the platform by using company money.
