International efforts to counter North Korean cryptocurrency theft are too reactive and must shift toward prevention to close off funding sources for the regime, according to a former U.S. sanctions official, stressing that the DPRK’s ability to innovate continues to outpace authorities’ capacity to respond.

In an interview with NK News, Dawson Law, a former senior policy adviser at the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), said North Korea’s cryptocurrency theft and laundering operations have undergone a dramatic transformation over the past decade, evolving from a supplementary revenue stream into a sophisticated, state-backed financial engine that exploits regulatory gaps worldwide.