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North Korea: We Can Prove Hacking Wasn't Us

North Korea says it can prove it had nothing to do with the cyber-attack on Sony (Swiss: SONC.SW - news) and proposes a joint investigation with the US.

The North Korean news agency KCNA warned there would be "grave consequences" if the White House declined the offer.

State media called the FBI's claim that North Korea was behind the attack on the entertainment giant a "slander".

The North's foreign ministry, quoted by KCNA, said: "As the United States is spreading groundless allegations and slandering us, we propose a joint investigation with it into this incident.

"Without resorting to such tortures as were used by the US CIA, we have means to prove that this incident has nothing to do with us."

A spokesman from the White House National Security Council said the United States stands by its assertion that the North Korean government orchestrated the cyber-attack.

"The Government of North Korea has a long history of denying responsibility for destructive and provocative actions," Mark Stroh said.

"If the North Korean government wants to help, they can admit their culpability and compensate Sony for the damages this attack caused."

President Barack Obama said on Friday that the US would "respond proportionally at a time and manner that we choose" against North Korea after the FBI said a "significant overlap" existed between the infrastructure used in the Hollywood studio hack and previous malicious cyber-activity linked to North Korea.

The hack prompted Sony Pictures on Wednesday to cancel the release of the comedy The Interview, which depicts a plot to assassinate North Korean leader Kim Jong-Un.

The decision to pull the film was made after the group claiming responsibility for the cyber-attack made terrorist threats against US cinemas that showed the movie.

The FBI said technical analysis of data deletion malware used in the data breach provided links to malicious programs previously developed by North Korea.

"North Korea's actions were intended to inflict significant harm on a US business and suppress the right of American citizens to express themselves," the bureau said in a statement.

"Such acts of intimidation fall outside the bounds of acceptable state behaviour."

Sky (Other OTC: BSYBF - news) 's Asia Correspondent Mark Stone said: "Korea-watchers are split on whether the FBI and US government have got this right or not because so many bits don't add up.

"After all, if Kim Jong-Un's people did somehow manage to hack Sony he wouldn't be admitting it, and if he didn't do it and everyone's accusing him of doing it surely he and his government would keep quiet because then it would look as though they were more powerful and capable than they are.

"The other thing I find interesting is this suggestion of terrorist attacks on US cinemas if they ran the film.

"Well, North Korea is accused of some pretty bad things but one thing it has never done is threaten terrorist attacks - certainly not on American soil. And the FBI still haven't given us any proof that North Korea was behind this."

The hackers, who call themselves Guardians of Peace, praised the decision to cancel the film's release in a statement provided to CNN on Friday.

The group also said it would keep Sony's data secure if the company continued to comply.

Lt Col Chris Parker, former Chief of Staff of the Desert Rats and a cyber security expert, told Sky News: "We probably have to wonder whether the FBI's allegations are there to create waves - have they got evidence? No one perhaps knows at this stage.

"The North Koreans would learn an awful lot about what is known by the FBI and the Americans by conduction a joint investigation. If they were to get away with that they would have a win-win."

:: North Korea on Saturday vowed to bolster its nuclear capacity in the face of a United Nations resolution calling for it to be referred to the International Criminal Court (ICC) over its human rights record.

The UN General Assembly on Thursday adopted a resolution by a strong majority that asks the Security Council to refer North Korea to the ICC and to consider targeted sanctions against the Pyongyang leadership for the repression of its citizens.

North Korea's foreign ministry said in a statement carried on the official Korean Central News Agency that it would increase "efforts to bolster up in every way its capability for self-defence including nuclear force".