U.N. Alleges North Korea Laundered Cryptocurrency to Evade Sanctions
- The discovery was made when the U.N. conducted an investigation into the ways North Korea evades sanctions.
- The scheme used over 5,000 transactions in multiple countries to make the laundering “difficult to track”.
Allee des Nations (Avenue of Nations) of the United Nations Palace in Geneva, with the flags of the member countries, December 17, 2017. Penn Today
A Hong Kong-based blockchain company has been used as a front to launder money for North Korea, South Korean newspaper Chosun reported on 6 November.
The publication cites a new quarterly report from the United Nations Security Council’s Sanctions Committee on North Korea, which conducted an investigation into the various ways North Korea evades sanctions using cryptocurrencies. The report alleges that the country used a blockchain-focused shipping and logistics firm called Marine China to launder stolen stolen cryptocurrency.
The sole owner and investor into the company was an individual named Julian Kin, also known under his alias as Tony Walker, who allegedly attempted to withdraw cash from Singaporean banks several times. The laundering scheme, which involved another unnamed individual, used at least 5,000 discrete transactions in multiple countries to make the laundering “difficult to track”.
The investigation further alleges that North Korea has developed “spear-phishing” methods, to conduct precision attacks on its targets. It also notes that North Korean hackers use a malicious code, which is designed to move stolen cryptocurrencies to a server located at the Kim Il-sung University in Pyongyang.
Recently, the U.S. Treasury Department sanctioned three hacker groups who allegedly were sponsored by North Korea, and stole cryptocurrency for its government. In August, a U.N. report alleged that 17 countries have been targeted by North Korean hackers, which resulted in damages totaling over $2 billion, an accusation which the country’s regime has denied.
A September report from Vice also alleges that North Korea is in the early stages of developing its own central bank digital currency, which will be similar to Bitcoin, in an attempt to avoid international sanctions.
- The U.S. Department of Justice worked together with the Federal Bureau of Investigations, Treasury Department, and French authorities to take down the laundering operation.
- Crypto Twitter, however, was not impressed with the “major international cryptocurrency enforcement action” against the little known platform.
U.S. Department of Justice building in Washington, D.C, 10 January, 2012. Diego M. Radzinschi/The National Law Journal
- The North Korean hackers drew the attention of the U.S. Department of Justice back in May 2021, when a Kansas hospital reported paying $100,000 ransomware payment in BTC.
- The DoJ was able to trace the ransomware payments to China-based money launderers, as well as uncover a new type of ransomware used to target U.S. health care providers.
- The Metropolitan Police have seized $160 million worth of cryptocurrencies in the country’s largest AML confiscation ever.
- The Met’s Economic Crime Command wants to prevent money laundering using crypto and is lobbying for tougher laws.