Why North Korea Is Winning Crypto Crime and How to Fight Back | Ari Redbord, TRM Labs

In this pivotal episode of Bankless, host Ryan Sean Adams sits down with Ari Redbord, global head of policy at TRM Labs, to dissect how North Korea has emerged as a dominant force in global crypto crime. Redbord reveals that North Korea’s Lazarus Group has evolved from targeting banks and tech firms to conducting highly sophisticated, long-term social engineering campaigns—such as infiltrating DeFi teams through conferences and fake partnerships—culminating in massive hacks like the $285 million Drift protocol breach. Over the past five years, North Korea has stolen an estimated $6 billion in crypto, using it to fund weapons proliferation and destabilize global security. The episode explores the mechanics of their laundering strategies, including rapid movement to Bitcoin via Thorchain, use of mixers like Tornado Cash, and reliance on Chinese-based OTC brokers and criminal networks. Redbord argues that while crypto enables unprecedented transparency for law enforcement, it also presents new challenges in privacy and jurisdiction. He advocates for a multi-pronged defense: hardening cyber defenses, creating a global 'Beacon Network' to block illicit funds in real time, and even pursuing offensive cyber operations—akin to historical 'letters of marque'—to reclaim stolen assets. The conversation also touches on Iran’s growing use of crypto for sanctions evasion, the ethical tension between privacy and security, and the urgent need for victim restitution funds and industry-wide best practices. Despite the risks, Redbord remains optimistic that with coordinated public-private action, the crypto ecosystem can defend itself and even turn the tables on state-sponsored cybercriminals.