A New Wave of AI-Powered Cybercrime
Privacy researchers and intelligence analysts are sounding the alarm: North Korea is reportedly using banned Nvidia GPUs to enhance its illicit crypto operations. A new intelligence review shows that the country has quietly built up nearly three decades of AI research, focusing on pattern recognition, speech processing, and data optimization-technologies that can directly enhance crypto theft, money laundering, and deepfake identity attacks.
According to a detailed analysis published by South Korea’s Institute for National Security Strategy (INSS), North Korean research teams have even used components such as the Nvidia GeForce RTX 2700, which is officially restricted under U.S. export controls. Analysts warn that adding high-performance GPUs into the country’s cyber arsenal could exponentially increase the frequency and precision of attacks.
AI Research Built for Cyber Offense
Kim Min Jung, head of the INSS Advanced Technology Strategy Center, warned in the report that there is an urgent need to track North Korea’s AI progress, stating:
The report outlines that since the 2010s, Pyongyang has dramatically strengthened its internal AI capacity through expanded research institutions and increasingly advanced algorithms. Recent studies from North Korean labs focused on facial recognition, accent identification, and multi-object tracking, with an emphasis on improving accuracy under limited computing conditions.
Researchers believe these systems could be deployed to identify targets, mimic identities, and conduct more efficient social engineering attacks- a technique widely used by North Korean hacking groups.
Banned GPUs Slip Through Sanctions
Multiple studies cited in the analysis confirmed that North Korean researchers used Nvidia RTX 2700 GPUs, which the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) explicitly prohibits from export to North Korea.
This raises questions about how such hardware crossed international supply lines—especially given increased sanctions enforcement since the Ukraine war. The report indicates that North Korea, China, and Russia have expanded cooperation, creating new channels through which such technology may be slipping.
Crypto Theft Still Funds Weapons Programs
Despite sanctions, crypto theft remains a core funding source for North Korea’s nuclear and missile programs. Automation powered by AI could allow smaller teams to carry out operations “with efficiency comparable to industrial-scale efforts” the report warns.
Earlier this year, cybersecurity firm AhnLab reported that North Korean hacker groups-especially Lazarus and Kimsuky-were linked to over 86 cyberattacks, with Lazarus tied to major breaches across exchanges and DeFi protocols.
Growing Threats & Global Risk
Experts say there is no evidence North Korea is using top-tier generative AI models yet, but its rapid progress in AI infrastructure, crypto-targeted malware, and identity spoofing tools marks a turning point.
Intelligence agencies fear that the combination of banned GPUs, AI-trained cyber units, and a global network of laundering infrastructure could make North Korea one of the most capable digital threat actors in the world.
