The US Department of Foreign Assets Control (OFAC) has sanctioned three individuals who allegedly supported North Korea through illegal financing and malicious cyber activity.
on a monday Press releaseThe US Treasury claimed that three individuals provided material assistance to Lazarus Group, a North Korean hacking team known for crypto theft, to convert stolen cryptocurrency into fiat currency.
Mainland China-based virtual currency trader Wu Huihui and Hong Kong-based currency trader Cheng Hung Man were over-the-counter (OTC) traders who facilitated crypto transactions for Lazarus, according to the agency.
A third person, Sim Hyon Sop, was identified as a North Korean banker who provided other financial support.
“Today’s indictments demonstrate that North Korea continues to use a variety of methods to circumvent US sanctions,” US Attorney for the District of Columbia Matthew Graves said in a statement.
“We can and will ‘follow the money’, whether through cryptocurrency or the traditional banking system, to bring appropriate charges against those who help fund this corrupt regime.”
The announcement states that the North Korean government uses crypto assets obtained by the Lazarus Group to fund its illegal nuclear program. The regime has repeatedly threatened Japan and other neighbors with nuclear weapons.
North Korea has laundered billions of dollars through cryptocurrency theft and other schemes since at least 2017.
Earlier this year, the White House Said North Korean hackers have stolen more than $1 billion worth of crypto over the past two years, saying Pyongyang has used the funds to support its missile program.
the US government has also Claimed North Korean hacking group Lazarus was responsible for Hack of AXI Infinity’s Ronin Blockchain The hackers made off with around $625 million worth of Ethereum and USDC.
However, North Korea has repeatedly denied it wanted to hack crypto and has denied allegations surrounding Lazarus Group, which has previously been accused of masterminding the 2014 hack of Sony Pictures and the 2017 WannaCry ransomware attacks. Is charged.
North Korean hackers exploit DeFi and crypto loopholes
North Korean hacking groups, which are responsible for a large portion of illegal cyber activity, are constantly innovating and finding new ways to steal crypto assets and launder those funds.
Earlier this month, the US Treasury Claimed That North Korean hackers and scammers are taking advantage of loopholes in the decentralized finance (DeFi) space to hide money laundering and criminal activities.
The federal agency said that North Korean hackers and other groups engaged in illegal activities have profited from some DeFi platforms’ non-compliance with certain AML and CFT regulations.
as well as recently reports Cyber security firm Mandiant said that Pyongyang-based hacking group APT43, also known as Kimuski, buys cloud mining services to produce clean crypto with its stolen funds, which is difficult for law to trace. There is no blockchain-based connection to enforcement.
The report claimed, “APT43 stole and laundered enough cryptocurrency to purchase operational infrastructure in line with North Korea’s Juche state ideology of self-reliance.”