Washington:A U.S. cryptocurrency expert has emphasized the need for South Korea to enhance its collaboration with the United States and Japan in imposing sanctions to counter North Korean cryptocurrency theft. This call to action follows a significant incident involving Binance, the world's largest cryptocurrency exchange.
According to Yonhap News Agency, Ari Redbord, the global head of policy at TRM Labs, highlighted the importance of South Korea deepening its joint efforts with the U.S. and Japan. He suggested that additional pressure on North Korea could be achieved through both unilateral and multilateral sanctions. Redbord's comments were made in response to an inquiry from Yonhap regarding South Korea's actions following the recent theft at Binance.
The U.S. Federal Bureau of Investigation has attributed the theft of over $6 billion in cryptocurrency from Binance to North Korea. However, North Korea has denied these accusations, labeling them a "grave political provocation."
Redbord stressed the urgency of imposing diplomatic pressure on North Korea and its Chinese enablers, as well as targeting Chinese money laundering networks that support Pyongyang. He stated that rapid action is crucial in such cases, as the opportunity to freeze and recover stolen funds is limited to hours and days, rather than months.
TRM Labs, a blockchain intelligence firm, was among the first to publicly attribute the theft to North Korean hackers. Redbord noted that while South Korean financial regulators responded swiftly by convening cryptocurrency exchanges to review security, there were shortcomings in the speed and coordination of efforts to block illegal transactions.
The South Korean unification ministry reported that discussions regarding possible sanctions over the Binance incident had not yet begun, as the government was still assessing the circumstances of the alleged theft. Meanwhile, the foreign ministry is reviewing potential additional measures, including unilateral cyber sanctions.
Redbord emphasized that additional sanctions could disrupt North Korean cryptocurrency laundering operations, provided they target the networks converting stolen digital assets into conventional currency. He also recommended that South Korea establish standing asset-freezing protocols with major cryptocurrency exchanges and stablecoin issuers, and enhance the connection between its exchanges, financial regulators, and law enforcement agencies with international real-time asset recovery efforts.
Source Yonhap News Agency