North Korea Accused of Laundering $147.5M in Crypto via Tornado Cash

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As a seasoned crypto investor with years of experience in the industry, I’m deeply concerned about the latest revelation of North Korea’s involvement in laundering $147.5 million through Tornado Cash. This is yet another reminder of the potential risks and challenges that come with investing in cryptocurrencies.

UN sanctions investigators have disclosed that there are accusations North Korea illegally washed $147.5 million, proceeds of a cryptocurrency heist, via the Tornado Cash mixing service in March.

The international community expresses concern once again over the misuse of cryptocurrencies for bypassing global sanctions through money laundering practices.

North Korea’s Involvement with Tornado Cash

United Nations investigators have uncovered new details about North Korea’s recent cyber-financial transactions, which involve the laundering of approximately $147.5 million through the crypto mixer Tornado Cash. According to the submitted documents to the U.N. Security Council sanctions committee, this ill-gotten money is believed to have been taken from the HTX cryptocurrency exchange towards the end of last year. In March, it was funneled through Tornado Cash.

According to the findings from PeckShield, a crypto analytics firm, and Elliptic, a blockchain research company, North Korea’s illicit activities in the cryptocurrency world are sophisticated and effective at bypassing international sanctions.

NORTH KOREA LAUNDERED $147.5 MILLION IN STOLEN CRYPTO IN MARCH, SAY UN EXPERTS

As a crypto investor, I’ve come across some concerning news. It’s been reported that North Korea allegedly laundered $147.5 million of stolen cryptocurrencies through the virtual currency platform Tornado Cash back in March. The funds were believed to have been pilfered from a cryptocurrency exchange last year, as revealed in confidential work by United Nations member states. This is a stark reminder of the risks associated with the anonymity that crypto transactions can provide and the importance of implementing robust security measures to safeguard our investments.

— *Walter Bloomberg (@DeItaone) May 14, 2024

Experts have examined a grand total of 97 alleged cyberattacks by North Korea on cryptocurrency firms between the years 2017 and 2024, resulting in an estimated loss of approximately $3.6 billion. For example, during the year 2024, it is believed that North Korea orchestrated eleven separate thefts from cryptocurrency companies, totaling $54.7 million in damages.

As a crypto investor, I’ve come across numerous reports suggesting that many of these hacks or breaches may be the doing of North Korean IT workers who managed to secure employment with small crypto companies unintentionally. Consequently, they gained access to these platforms from within the North Korean borders, enabling them to exploit the systems.

Global Responses and Arrest

Following the discoveries, there’s been heightened scrutiny and harsher measures taken by the global community towards Tornado Cash. This platform is commonly utilized by cybercriminals to conceal the ill-gotten gains’ source.

In 2022, the US authorities placed restrictions on Tornado Cash due to allegations that it served as a covert instrument for money laundering activities carried out by North Korean hacking groups. This move was executed under a broader initiative aimed at regulating digital spaces implicated in financial deceit.

The developer of Tornado Cash, Alexey Pertsev, was sentenced to 64 months in prison by a Dutch court for laundering over $1.2 billion in cryptocurrency, shedding light on the persistent challenges and legal issues surrounding global cryptocurrency transactions, particularly those with potential links to international security risks.

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2024-05-15 01:56