The United States is taking steps to seize 280 cryptocurrency accounts linked to cyber-attacks on two virtual currency exchanges, believed to be carried out by North Korean threat actors.
A civil forfeiture complaint filed by the Justice Department reveals that hackers stole millions of dollars’ worth of cryptocurrency and laundered the funds through Chinese over-the-counter (OTC) cryptocurrency traders.
In one instance cited in the complaint, an individual tied to North Korea hacked a virtual currency exchange in July 2019, making off with over $272,000 in various cryptocurrencies and tokens such as Proton Tokens, PlayGame tokens, and IHT Real Estate Protocol tokens. The stolen funds were then converted into different forms of cryptocurrency through a process known as chain hopping to conceal the money trail. The currency was subsequently laundered through multiple intermediary addresses and other virtual currency exchanges.
Additionally, the complaint alleges that the same hacker stole nearly $2.5 million from a US company’s virtual currency wallets in September 2019, before laundering the funds through over 100 accounts at another currency exchange.
This recent legal action follows previous criminal and civil proceedings announced by the Justice Department in March of this year concerning the theft of $250 million in cryptocurrency through other exchange hacks orchestrated by North Korean actors.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division emphasized the connections between North Korea’s cyber-hacking operations and a Chinese cryptocurrency money laundering network. He stated, “Today’s action publicly exposes the ongoing connections between North Korea’s cyber-hacking program and a Chinese cryptocurrency money laundering network.”
Assistant Attorney General John Demers of the Justice Department’s National Security Division acknowledged that while seizing the accounts may provide some relief to victims, it will not deter North Korea from engaging in cybercrimes against the financial industry. Demers emphasized the importance of attributing national security cyber threats, imposing costs on the perpetrators, and supporting victims of malicious cyber activities.
In conclusion, Demers highlighted the significance of collaborative efforts between the private sector, foreign governments, and law enforcement agencies in countering cyber threats posed by North Korea. He stated, “Although North Korea is unlikely to stop trying to pillage the international financial sector to fund a failed economic and political regime, actions like those today send a powerful message to the private sector and foreign governments regarding the benefits of working with us to counter this threat.”
This information is crucial in the ongoing efforts to combat cybercrimes and protect the integrity of the financial industry.