FATF Alarm: Cryptocurrency is Fueling North Korea and Iran's Weapons Programs

According to the latest report from the International Anti-Money Laundering Force (#FATF ) published in June 2025, countries under sanctions like North Korea and Iran are exploiting cryptocurrency to evade sanctions and fund illegal weapons programs.

The report specifies that North Korea alone has stolen $1.4 billion from the ByBit exchange in February, subsequently laundering the money through mixing services, non-custodial wallets, and poorly regulated exchanges. The Lazarus hacking group, notorious for cyberattacks backed by Pyongyang, continues to play a crucial role.

According to Jeremiah O'Connor (Webacy), cryptocurrency has become an ideal tool because it crosses borders, operates 24/7, requires no intermediaries, and easily exploits legal loopholes.

Chainalysis's research also found that this criminal network is linking multiple geopolitical hotspots: from North Korea's involvement in the Ukraine war, Russia-Iran cooperation in building drone factories, to Chinese fentanyl trafficking groups connecting with Mexican cartels.

⚠️ Warning: Cryptocurrency could become a global security loophole if lacking strict oversight. Investors and exchanges need to strengthen risk management to avoid inadvertently facilitating illegal capital flows! #northkorea