North Korea Uses Cryptocurrency, IT Workers to Evade UN Sanctions, Fund Weapons Development

North Korea, under Kim Jong Un, has intensified cyber operations to circumvent UN sanctions by stealing at least $1.65 billion through hacking from January to September 2025, including a major $1.4 billion theft from the cryptocurrency exchange Bybit. These illicit gains, added to the $1.2 billion acquired in 2024, are funneled into developing weapons of mass destruction and ballistic missile programs. The regime also uses stablecoins for transactions involving military equipment and raw materials like copper, critical for munitions production. Additionally, North Korea has deployed IT workers to at least eight countries, including China, Russia, and several African nations, to launder money and generate revenue, violating UN sanctions that prohibit overseas North Korean labor. Reports indicate plans to send up to 40,000 workers, including IT specialists, to Russia, highlighting deepening military and economic ties between Pyongyang and Moscow, especially as North Korean troops support Russia’s conflict in Ukraine. Furthermore, North Korean IT workers have disguised their nationalities to secure contracts in the entertainment industry, indirectly supporting the regime’s revenue streams.