Key Highlights

  • South Korea's National Police Agency signed a memorandum of understanding covering Korean-language investigator training, professional certification, and joint blockchain tracing exercises across fraud, money laundering, and North Korea-linked cases.

  • North Korea-linked groups stole more than $2 billion in cryptocurrency during 2025, a 51% increase year-over-year, bringing their estimated five-year total to approximately $5.5 billion, with stolen funds typically routed across multiple blockchains before cashout.

  • The deal follows the creation of a dedicated South Korean police task force targeting crypto-based money laundering and unregistered exchange operators, with investigators now authorized to trace funds converted into stablecoins such as USDT.

South Korea's National Police Agency has formalized a blockchain analytics cooperation agreement signed in April and announced on June 9. The deal expands collaboration on virtual asset investigations covering crypto fraud, money laundering, and attacks attributed to North Korean state-linked hacking groups. Under the agreement, KNPA-designated investigators will receive Korean-language training and access to a certification program covering both basic and advanced blockchain investigation methods, with joint exercises built around current crime patterns.

The focus on North Korean activity reflects the scale of the threat. State-linked groups stole more than $2 billion in cryptocurrency during 2025, a 51% increase year-over-year, bringing their all-time estimated total to approximately $5.5 billion. Investigators tracking these cases face a structural challenge: stolen funds typically cross dozens of jurisdictions through exchanges, cross-chain bridges, and mixing services before attackers attempt conversion. The agreement includes protocols for sharing intelligence on new criminal methods and technology used by threat actors.

South Korea has particular exposure to North Korean crypto operations. State-linked hackers have been connected to six of nine major exchange breaches involving South Korean platforms between 2017 and 2025, with confirmed losses exceeding $120 million. In one prior case, Seoul police used blockchain forensic data to track an international hacking group to Thailand after the group stole approximately $30 million, an outcome that illustrated the practical value of cross-border tracing in real-world enforcement.

The agreement sits within a broader tightening of South Korean crypto enforcement. Police recently established a dedicated task force combining economic crime, cybercrime, counterterrorism, narcotics, and intelligence units to target crypto-based money laundering. The unit is authorized to investigate unregistered exchange operators and trace funds converted into stablecoins. Authorities have also set aside funding for specialist virtual asset training, signaling institutional investment in this area that extends well beyond a single cooperation agreement.