North Korea Cracks Down On Hacker Ring Behind Central Bank Cyber Theft

North Korean authorities have arrested a group of hackers accused of breaching the internal networks of the Chosun Central Bank and the Foreign Trade Bank, using crypto to launder stolen state funds. A source in Pyongyang told local media the ring converted trade funds into crypto and smuggled foreign currency across border regions before being caught.

Former Military Hackers Built Hidden Network

The group was reportedly led by discharged veterans from a cyber operations unit under North Korea’s Reconnaissance and Intelligence General Bureau, who later recruited young IT talent from Kim Chaek University of Technology and Pyongyang University of Science. Using Chinese made wireless equipment and encrypted messaging apps, the group broke into secured banking systems, splitting stolen funds into small increments before routing them into overseas crypto wallets, with brokers in China converting the coins back into cash.

Investigation Led To Pyongyang Safe House Raid

Officials grew suspicious after noticing irregularities in foreign currency approvals and unusual overseas IP activity. The National Intelligence Agency traced the transactions to a safe house in Pyongyang and raided it on July 12, arresting the group while they were actively laundering funds. Authorities seized computer equipment and unregistered phones, and later secured both banks’ facilities while tracking the group’s wireless signals across the capital.

News of the scheme has spread through military and university circles, with officials expecting severe punishment for those involved, given the funds were stolen using state-trained skills.