North Korea Denies Crypto Hack Allegations: Unpacking the ‘Absurd Slander’ Claim

North Korea formally denied U.S. and international allegations that it orchestrated major crypto hacks, calling the claims “absurd slander” on May 3, 2025. Independent blockchain firms attribute over $6 billion in thefts since 2017 to North Korean-linked groups (notably Lazarus), including the $1.5bn Bybit hack and $100m Horizon Bridge exploit in 2025. The dispute has prompted stronger global AML/KYC rules, OFAC sanctions on wallets, and intensified blockchain surveillance. For markets, sustained attribution and sanctions increase compliance costs, raise counterparty risk for exchanges and DeFi bridges, and could depress liquidity and institutional flows into crypto (notably BTCUSD), while accelerating regulatory fragmentation across jurisdictions.