UN Report Reveals North Korean Cybercriminals Launder Millions in Crypto
If you are involved in the crypto world, you must be aware of the recent United Nations report that exposes the activities of the North Korean hacking group, Lazarus Group, in laundering stolen cryptocurrency back to the country. The report discloses that these cybercriminals used Tornado Cash, a mixer known for its privacy features, to channel $147.5 million worth of crypto, despite being sanctioned in 2021.
Lazarus’s Mega Crypto Theft
- The Lazarus Group orchestrated a massive heist from the crypto exchange HTX, owned by TRON’s Justin Sun, in March 2023.
- The stolen funds were then routed through Tornado Cash, a privacy-focused mixer accused of enabling crimes due to its exploitable design.
Investigation Findings by the UN
- The United Nations report submitted to the security council sanctions committee investigates 97 suspected cyber attacks by North Korea on crypto firms from 2017 to 2024, resulting in over $3 billion in theft.
- This study highlights North Korea’s significant cyber warfare capabilities and its reliance on cybercrime for foreign exchange.
The Involvement of Tornado Cash
Tornado Cash has been a preferred tool for North Korean hackers to launder stolen cryptocurrency. In 2022, the US subjected Tornado Cash to sanctions, accusing it of aiding money laundering for North Korea. In 2023, two co-founders of the mixer faced charges related to facilitating over $1 billion in money laundering, including activities linked to North Korean cybercriminals.
North Korea’s Escalating Cyber Offensives
In 2023, North Korea intensified its attacks on cryptocurrency platforms, executing a record number of 20 hacks despite a downturn in the crypto market. Chainalysis reports that these hacks yielded over $1 billion, with $429 million siphoned from DeFi platforms and substantial amounts stolen from centralized services, exchanges, and wallet providers.
Final Thoughts
The Lazarus Group, utilizing sophisticated strategies and mixers like Tornado Cash, poses a significant threat to global financial security. The international community is actively tracking and recovering stolen assets while implementing stringent sanctions and enhanced security measures to combat future cybercrime.
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