January 20, 2022

How North Korea Might Exploit New Video Games for Crypto

Pyongyang has demonstrated growing interest and capability in exploiting new financial technology to obtain valuable foreign currency needed for its weapons development programs. Given the rising popularity in trading cryptocurrency, North Korean hackers are likely to include new play-to-earn (P2E) crypto games within their illicit cyber-enabled financial schemes.

The online gaming industry has a history of illicit actors exploiting its networks and user base to conduct and facilitate cyber-enabled financial crime.

Once reserved for professional gamers winning massive cash prizes at national and global tournaments, video gaming has evolved to now provide amateur gamers and crypto enthusiasts with opportunities to earn large amounts of cryptocurrency with relative ease. Most video games follow play-to-win (P2W) mechanics that entice players to complete a series of puzzles, tasks, and activities to “beat the game” or progress to the next level. In order to earn money, professional players typically enroll in tournaments organized by third parties to win cash prices and other financial rewards. However, P2E crypto games operate on blockchain technology that facilitates the earning of cryptocurrency within the game itself, or non-fungible tokens (NFTs) that can be later sold for cryptocurrency. The technological mechanics of P2E crypto games remove the need for tournaments or third-party organizers to provide players with potential financial rewards outside of the game, which presents new financial risks within the online gaming world.

Read the full article from The Diplomat.

  • Commentary
    • Lawfare
    • December 13, 2024
    Our Man in Damascus? Sanctions and Governance in Post-Assad Syria

    The complexity of the legal and policy issues presented by the sanctions thicket surrounding Syria—and the disparate authorities responsible for various parts of it—will requi...

    By Alex Zerden

  • Video
    • December 13, 2024
    Ziemba: Russia & Iran Concentrating on Own Battles

    The rebel-led alliance in Syria is set to form a transitional government, after overthrowing President Bashar Al Assad. Reports say the reason the Assad regime fell so quickly...

    By Rachel Ziemba

  • Commentary
    • December 12, 2024
    Sharper: Tariffs

    The incoming Trump administration has signaled that tariffs will be a central pillar of its economic strategy, with significant implications for international trade, the Ameri...

    By Eleanor Hume, Charles Horn & Gwendolyn Nowaczyk

  • Podcast
    • December 12, 2024
    Taking Trump’s Tariffs Threats Seriously

    Join Emily and Geoff to catch up on a whole bunch of economic security news, including the ill fated Nippon Steel / U.S. Steel deal, new chips export controls, and TikTik’s ba...

    By Emily Kilcrease & Geoffrey Gertz

View All Reports View All Articles & Multimedia