S. Korea should deepen work with U.S., Japan on sanctions against N.K. after Binance theft: expert - Yonhap News Agency

Ari Redbord, global head of policy at U.S. blockchain intelligence firm TRM Labs, urged South Korea to deepen joint work with the United States and Japan to impose additional pressure on North Korea following the massive cryptocurrency theft from Binance.

The U.S. Federal Bureau of Investigation has attributed the theft of more than US$6 billion in cryptocurrency to North Korean hackers, though Pyongyang denied the accusation, calling it a "grave political provocation."

Sanctions and Pressure

Redbord emphasized that pressure should include multilateral and unilateral sanctions, diplomatic measures against North Korea and its Chinese enablers, and action against Chinese money laundering networks Pyongyang relies on.

South Korean Response

While South Korean financial regulators quickly convened cryptocurrency exchanges to review security after the incident, Redbord pointed to shortcomings in the speed and coordination of efforts to block illicit transactions.

South Korea's unification ministry stated that discussions on possible sanctions had not begun as the government was still establishing the circumstances of the alleged theft. The foreign ministry said it was reviewing additional measures, including unilateral cyber sanctions, but no decision had been made.

Targeted Sanctions

Redbord noted that additional sanctions could help disrupt North Korean cryptocurrency laundering operations if they target the networks converting stolen digital assets into conventional currency.

He called for South Korea to establish standing asset-freezing protocols with major cryptocurrency exchanges and connect its regulatory agencies to international real-time asset recovery efforts.