How North Korea turns child prodigies into crypto thieves

North Korea cultivates top young hackers into skilled cybercriminals, offering them luxurious rewards and privileges in return for their expertise. The regime selects 200 middle school students annually to study computer engineering, with only a select few eventually becoming hackers in a program that has proven highly effective. Kim Heung-kwang, a former North Korean defector who trained hackers, describes the regime's approach as systematic, with no regard for whether the children wish to become hackers or not.

The hackers, known as "TraderTraitor" according to the FBI and Binance, have carried out some of the most significant cyber heists, including a recent $6.3 billion attack on Binance. The regime has invested heavily in their development, providing them with spacious apartments in the capital, high-status marriages, and membership in the ruling party as rewards for their work. These hackers are also eligible to travel abroad to allied countries, such as China, where they can access the internet with greater freedom.

North Korea established a cyber unit in 1998, which gained prominence under Kim Jong-un's leadership in 2013 when he declared cyber warfare an essential component of the country's strike capability. The selection process begins in middle school, with authorities choosing about 150 to 200 children each year to study computer science. Successful candidates are then sent to North Korea's top universities and undergo further screening before joining the military's cyber unit as hackers.

While the regime provides numerous privileges for its hackers, the group remains a small fraction of North Korea's cyberwarfare operations, which employ around 8,400 people, according to South Korea's National Intelligence Service. Despite their significant contributions, the regime's hackers face little consequence for their actions, enabling them to continually refine their strategies and remain a formidable threat on the global stage.