Japan is preparing to push for a unified G7 stance against North Korea’s escalating cryptocurrency thefts, signaling a growing urgency to clamp down on state-sponsored cybercrime. According to local reports, Prime Minister Shigeru Ishiba will present the issue at the upcoming G7 summit in Canada, marking the first time the group formally addresses coordinated action against Pyongyang’s digital asset heists.
The move comes amid mounting evidence that stolen crypto funds are fueling North Korea’s weapons programs, with recent high-profile hacks—including Japan’s own $307 million DMM Bitcoin breach—underscoring the need for tighter international oversight. Analysts suggest that disrupting these financial pipelines could weaken the regime’s ability to fund missile and nuclear development, a critical step in safeguarding regional stability.
### The Catalyst: Japan’s $307 Million Wake-Up Call
Last May, Tokyo-based DMM Bitcoin, one of Japan’s largest crypto exchanges, was hit by a sophisticated cyberattack traced to TraderTraitor, a North Korean hacking collective. Investigators revealed that the breach originated from a social engineering ploy: a North Korean operative, posing as a recruiter, tricked an employee at Ginco, a wallet provider servicing DMM Bitcoin, into downloading malware.
The malicious script granted hackers access to Ginco’s systems, which they later exploited to manipulate a transaction request, siphoning 4,500 BTC—worth $307 million at the time—into wallets controlled by the group. The incident forced DMM Bitcoin to halt operations, sending shockwaves through Japan’s financial sector and hardening the government’s resolve to act.
### A Global Pattern of Cyber Heists
North Korea’s cybercriminal operations extend far beyond Japan. The regime’s hackers have been linked to some of the largest crypto thefts in recent years, including the $625 million Ronin Bridge attack, the $100 million Harmony exploit, and multiple breaches targeting decentralized finance (DeFi) platforms. Estimates suggest Pyongyang has stolen over $3 billion in crypto since 2017, with much of it funneled into its illicit weapons programs.
In response, international authorities have ramped up countermeasures. The U.S. Department of Justice recently moved to seize $7.7 million in crypto tied to North Korean IT workers infiltrating blockchain firms—part of a broader initiative to dismantle the regime’s revenue streams. Meanwhile, Washington and Seoul have deepened collaboration on cyber defense, developing joint technologies to track and intercept stolen funds.
### What’s Next?
At the G7 summit, Ishiba is expected to advocate for stronger regulatory coordination, including stricter monitoring of digital asset markets and faster intelligence-sharing to freeze illicit transactions. While the proposal faces logistical hurdles—given the decentralized nature of crypto—experts argue that a united front could significantly disrupt Pyongyang’s financing networks.
“North Korea’s cyber operations are a direct threat to global financial security,” said Keiko Tanaka, a cybersecurity analyst at Tokyo’s Waseda University. “Without multilateral action, these attacks will only grow bolder.”
As the summit approaches, all eyes are on whether the G7 can translate concern into concrete policy—and if so, whether it will be enough to stem the tide of one of the world’s most prolific state-backed hacking campaigns.
