Chainalysis CEO "Ongoing North Korean Cyber Threats... Continued Support for South Korea"

10th Anniversary Visit Meeting on the 10th
Sharing Global Public-Private Partnership Scam Prevention Project Cases
Cooperation with Korean National Police Agency... Utilizing Forensic Tools

Michael Gronager, CEO and co-founder of Chainalysis, speaking at the Chainalysis 10th anniversary press conference on the 10th. Photo by Chainalysis

Michael Gronager, CEO and co-founder of blockchain data analytics company Chainalysis, which is celebrating its 10th anniversary, stated on the 10th, "We will spare no support to help South Korea prepare for and respond to the ongoing cyber threats from North Korea through public-private cooperation."

"South Korea is a key market... North Korea's cyber hacking methods are evolving"

At a press conference that day, CEO Gronager said, "South Korea has become a core market for Chainalysis by providing greater transparency to the private sector and implementing regulations for users."

He also pointed out, "North Korea's cyber hacking methods are evolving, and they are targeting centralized exchanges, carrying out virtual asset hacks through off-chain social engineering techniques."

Chainalysis 10th Anniversary Press Conference Overview

Chainalysis is a blockchain data analytics company that maps the movement of digital assets to real-world services, making it easy to understand at a glance. It tracks illegal activities, manages risks, and supports the development of market solutions.

CEO Gronager noted, "When virtual assets first emerged, there were concerns that they would disrupt traditional finance (TradFi). However, as seen with Bitcoin exchange-traded funds (ETFs) and stablecoins, virtual assets are now recognized as another asset class."

He particularly highlighted how the perception of virtual asset-related crimes has significantly changed as virtual assets have established themselves as an asset class. In the past, virtual asset crimes were limited to crimes abusing virtual assets, but now virtual assets are used as part of a wide range of criminal activities such as drugs and fraud.

In fact, the global public-private scam prevention project led by Chainalysis, Operation Spincaster, was conducted in six countries including the United States, the United Kingdom, and Canada. It uncovered over 7,000 leads related to approximately $162 million (about 224 billion KRW) in damages. Chainalysis self-assessed that it contributed by closing victim accounts, seizing funds, and developing information to prevent scams.

Baek Yong-gi, Head of Korea Branch: "Domestic 'Crypto Spring' Returns"

Baek Yong-gi, Head of Chainalysis Korea, speaking at the meeting on the 10th

Baek Yong-gi, head of Chainalysis Korea, focused on the domestic 'Crypto Spring.' Looking at last year's expected virtual asset profits by country, Korean investors realized $1.04 billion (about 1.3923 trillion KRW) in profits, ranking 8th worldwide. In the upcoming 2024 Global Crypto Adoption Index, South Korea is estimated to have risen from 27th last year to 19th this year.

Baek said, "This growth is thanks to the 'Virtual Asset User Protection Act' implemented in July," adding, "The legislation will further legitimize the virtual asset market, increase the inflow of services that comply with regulations, and reduce illegal activities."

He also shared a recent case where Chainalysis forensic tools were used in domestic criminal investigations. In May, the National Police Agency arrested a criminal organization that opened a Telegram drug trading channel and distributed about 5 billion KRW worth of drugs from overseas to South Korea using virtual assets. Chainalysis forensic tools were used to conduct on-chain tracking during this process.

Baek stated, "Virtual asset crimes are no longer limited to virtual assets themselves but are linked to all types of crimes," and added, "We will continue to build trust in the virtual asset ecosystem by closely cooperating with law enforcement agencies like the National Police Agency as well as major exchanges."

Meanwhile, at the event, Kim Hyo-min, Chainalysis investigation advisory manager, demonstrated Chainalysis's investigative solutions. Through end-to-end investigative solutions, law enforcement and financial institutions tracked illegal virtual asset activities and analyzed fund flows.