South Korea’s National Police Agency (KNPA) and blockchain analytics firm Chainalysis have signed a memorandum of understanding (MoU) to deepen cooperation in investigating cryptocurrency-related crimes. The expanded partnership, formalized on April 22 and announced on June 10, aims to equip South Korean law enforcement with advanced tools, training, and intelligence-sharing capabilities to combat a wide range of digital asset offenses.
Chainalysis will provide personalized training content, professional certification programs, and practical instruction to KNPA personnel. The collaboration is designed to enhance investigators’ ability to trace illicit fund flows across borders – a critical need given South Korea’s status as one of the world’s top five crypto trading markets.
While the agreement is partly motivated by North Korean state-sponsored hacking threats – such as the Lazarus Group, which was linked to over $578 million in crypto thefts in April 2025 alone – Ryan Kwon, Chainalysis’s Country Director for South Korea, stressed that the partnership’s scope extends further. “While North Korean-driven attacks are understandably a national security focus, this partnership isn’t designed around a single threat. It’s fundamentally about building institutional capability,” Kwon told Cointelegraph. The initiative will also target domestic fraud, money laundering, and retail scams.
Recent data from CrowdStrike shows North Korea-affiliated hackers caused $2 billion in crypto losses in 2025, a 51% year-over-year increase. South Korean authorities have already used Chainalysis’s tools in high-profile cases: in September 2025, Seoul police dismantled an international hacking ring that stole approximately $30 million, tracking suspects to Thailand via blockchain analysis.
The MoU comes amid a broader enforcement push. In late May, the KNPA launched a multi-agency Money Laundering Eradication Task Force, signaling the country’s shift toward a layered, proactive policing model. The strategy could serve as a template for other high-volume markets like Japan and Singapore, analysts suggest.
