Emily Walker
Recent reports indicate that the United States is taking action against illegal cryptocurrency networks supporting North Korea by imposing sanctions on two individuals and one company based in the United Arab Emirates (UAE).
The US Treasury highlighted that these individuals were operating as fronts for the North Korean regime, laundering money and converting it into cryptocurrency, subsequently sending large amounts back to Pyongyang.
The Operations
The funds were reportedly sourced from cybercrimes and IT personnel, which play a role in North Korea’s weapons of mass destruction (WMD) and missile initiatives.
The sanctions specifically target Lu Huaying and Zhang Jian, who allegedly utilized a UAE-based company, Green Alpine Trading LLC, for their operations. As a result of these sanctions, their US assets are frozen, and Americans are prohibited from conducting business with them.
The Treasury emphasized the critical role of these illicit networks in bolstering North Korea’s military objectives. Acting Under Secretary for Terrorism and Financial Intelligence, Bradley Smith, remarked:
“As the DPRK continues to employ complicated criminal methods to finance its WMD and ballistic missile efforts, including the manipulation of digital assets, the Treasury is committed to dismantling the networks that aid this financial flow to the regime.”
Cybercrime and Digital Assets as Funding Sources
North Korean hackers have emerged as a significant threat in the cryptocurrency sphere, being involved in a majority of industry hacks.
The South Korean Yonhap News Agency has reported, citing the United Nations Security Council, that North Korean cyber operations now account for approximately 50% of the country’s foreign currency income.
This revenue is largely directed towards supporting WMD and military programs. Despite the efforts of regulators and cryptocurrency platforms to battle these cybercriminals, hackers consistently enhance their strategies in response to security improvements.
North Korean hackers have refined their techniques for exploiting the crypto landscape and engaging in cybercrime to acquire foreign capital. A recently uncovered tactic involves impersonating top executives or recruiters from cryptocurrency firms.
North Korean hackers have stolen billions in crypto by posing as VCs, recruiters, and IT professionals.
— TechCrunch (@TechCrunch) November 28, 2024
For instance, a member of the Lazarus Group pretended to be an executive at Fenbushi Capital, a Chinese blockchain investment firm. Through platforms like LinkedIn, they deceived unsuspecting individuals into clicking malicious links, granting the hackers access to confidential information.
Beware of the #Lazarus
attack on the fake Fenbushi Capital on LinkedIn! @fenbushi @SlowMist_Team @boshen1011 @VitalikButerin
pic.twitter.com/cAjAcPqkNj
— 23pds (山哥) (@im23pds) April 29, 2024
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