North Korean hackers use banned Nvidia processors to steal cryptocurrencies

North Korea is using banned NVIDIA GPUs to develop artificial intelligence and enhance its cyber operations, including cryptocurrency theft. This is stated in the report Analysis of North Korea’s AI Status and Policy Considerations, published by South Korean media. Experts warn that such technologies can help Pyongyang improve artificial intelligence in the areas of cybercrime, money laundering, and creating fake identities, which increases the level of digital threat to the world.

According to the study, North Korea has been actively developing the areas of pattern recognition, voice processing, and data optimization since the 1990s. Since the 2010s, the state has been expanding its network of research institutes and creating its own algorithms, while using hardware subject to international restrictions. In particular, a number of research projects have documented the use of NVIDIA GeForce RTX 2700 graphics cards, the export of which to the DPRK is completely banned by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC).

The resulting computing power, according to analysts, is used to develop deep fake technologies, bypass cybersecurity systems, and conduct attacks to steal cryptocurrencies. The report notes that Pyongyang is using these resources to finance its nuclear and missile programs, circumventing international sanctions. Research into tracking multiple people simultaneously on video could develop into real-time automated surveillance systems using drones and surveillance cameras.

Controlling the circulation of U.S. chips remains difficult despite restrictive policies. In January, the U.S. Department of Commerce released the Framework for Artificial Intelligence Diffusion, a document that regulates the distribution of high-performance chips based on the level of national security. However, as the case of North Korea shows, hardware components still find their way to prohibited jurisdictions through opaque research chains.

The report’s findings confirm that Pyongyang systematically circumvents technology sanctions by using illegal channels to acquire banned processors. This creates additional challenges for international regulators, as artificial intelligence technologies previously developed for civilian purposes are now becoming a tool for state financing of cybercrime.