Is North Korea really buying nuclear weapons using crypto?

About a month ago there was global consternation when it emerged that terrorist organization Hamas received part of its funding through crypto. Earlier this week, as Bitcoin traded above $40,000 again, accusations were made in the global media that North Korea is buying nuclear weapons with digital currencies.

Is all this really true? Doesn’t this simply mean that global regulation is really and urgently necessary?

Garantex

According to research by the Wall Street Journal, the money that paid for the October 7 terrorist attack on Israel ended up with Hamas through Garantex, a Russian crypto platform that would normally not be allowed to operate due to European sanctions, but one that the Kremlin leaves untouched .

It seems North Korea is also getting rich thanks to crypto. Earlier this week, American anti-crypto politician Elizabeth Warren claimed that they are using digital money to buy nuclear weapons, which of course also gives her a good argument to push her own crypto regulations through the US Congress.

Scott Melker, the well-known crypto fan who tweets under the moniker Wolf of All Streets, wondered whether that was correct.

“North Korea is using it to pay for about half of its nuclear weapons.”

Really!? @SenWarren, please share proof.

pic.twitter.com/xhaLQMXzsO

— The Wolf Of All Streets (@scottmelker) December 7, 2023

According to a recent press release from the White House, that is indeed true. Although it is not the case that the regime in Pyongyang simply goes shopping in Moscow or Beijing, orders a few nuclear weapons and then pays for them with a transfer in Bitcoin or Ether. The truth is a little more complicated than this.

After a trilateral meeting between Japan, the United States and South Korea, President Joe Biden’s press department explained this week that North Korea is indeed using digital currencies (which it receives through their famous hacking team called Lazarus) to expand their (illegal) nuclear to fund the weapons program. For example, in March 2022, they stole $600 million from Axie Infinity through a known hack.

So indeed, it is high time for global crypto regulation.