Inside North Korea's Elite Cyber Army: State Hackers and Crypto Heists
A Reuters investigation reveals how North Korea recruits gifted children into elite state cyber units, training them to execute massive crypto heists and finance the isolated regime.
North Korea is primarily known for its ballistic missiles and nuclear weapons, but one of Kim Jong Un's most dangerous assets operates behind computer screens. For over a decade, the Pyongyang regime has cultivated an army of skilled hackers who infiltrate secure global networks and siphon billions of dollars. A Reuters investigation reveals how the isolated nation identifies gifted children, trains them in cyber warfare, and rewards top performers with luxury apartments, wealth, and elite social standing.
This rare glimpse into the mechanism follows last month's cyber attack on the Binance cryptocurrency exchange, during which digital assets worth $6.3 billion were stolen. The Federal Bureau of Investigation and the company itself attributed the attack to North Korea, which denies involvement. Blockchain researchers linked the heist to the TraderTraitor hacking group, which is affiliated with the regime's cyber apparatus.
From School Classrooms to Cyber Units
The selection process begins as early as age 11 or 12. Each year, North Korean authorities select between 150 and 200 outstanding students to study computer science. By age 17, the brightest among them enter the country's most prestigious universities, where they undergo further screening. Only a few ultimately gain admission to the military cyber units.
"They are effectively one of Kim Jong Un's secret weapons," Kim Hong-kwang, a North Korean defector who previously trained hackers for the regime, told Reuters. According to him, no other nation systematically identifies talented children to turn them into hackers. The children's own wishes play no role in the decision.
The training covers advanced mathematics, foreign languages, cryptocurrency technologies, and the reverse engineering of foreign computing systems. Those who fail to secure spots in military units may be assigned remote programming jobs for Western companies, funneling their earnings directly to the regime.
For top performers, the rewards can be immense. Successful hackers can receive apartments in the capital, Pyongyang, sometimes spanning up to 132 square meters, where their parents are also permitted to live. They may secure ruling party membership, elite marriage prospects, and travel permits to countries such as China. According to one defector, their military unit may receive up to 30 percent of the heist profits in US dollars.
Billions with the Click of a Button
North Korea's cyber warfare apparatus was established as early as 1998, but gained prominence following Kim Jong Un's rise to power. In 2013, the supreme leader designated cyber warfare as an essential weapon alongside missiles and nuclear arms. According to South Korean intelligence estimates from 2024, approximately 8,400 individuals are employed in the state's cyber operations.
During the Binance attack, the assailants utilized a fake job interview to deploy malware onto an employee's computer. They subsequently leveraged internal artificial intelligence tools to seize control of the company's systems. Researchers warn that North Korean hackers are increasingly employing AI tools for code writing, document forgery, and the generation of synthetic identities.
Yet behind the perks lies a grim reality. Former workers described grueling ten-hour workdays, constant surveillance, rigid revenue quotas, and punishments for failing to meet targets. Some reported severe psychological distress and health issues resulting from the relentless pressure.
Despite this, experts assess that the success of the recent heist will only fuel Kim's ambitions. His hackers are now targeting larger and wealthier organizations, regardless of how complex their security architectures may be. For the regime, the risk clearly pays off.
