North Korea's Crypto Heist: $2.8 Billion Laundered Through Crime Networks

North Korea has reportedly stolen at least $2.8 billion in cryptocurrency between January 2024 and September 2025, according to a recent research paper from the Royal United Services Institute (RUSI). The regime is increasingly relying on established criminal networks to launder its stolen funds.

The study found that third parties often buy the stolen coins outright at a discount or mix them with proceeds from investment scams. This makes it difficult for investigators to track the money trail, as the funds are being funneled through the same networks used by scam syndicates and organized crime groups.

Investigations suggest that North Korea uses money mules recruited in the Philippines, Indonesia, and China to cash out its stolen cryptocurrency. These mules often sell small amounts of stablecoins on peer-to-peer marketplaces to avoid triggering bank review.

The RUSI paper highlights the need for regulatory guidance on correspondent relationships between exchanges, standardised onboarding questionnaires, secure intelligence-sharing channels, and a VASP identifier in payment messages. This would help receiving banks identify and block North Korean-controlled accounts.