According to another ReportsThe United States has made efforts to disrupt illicit cryptocurrency-related networks supporting the North Korean government, announcing sanctions on two individuals and one entity in the United Arab Emirates.
In particular, the US Treasury Department said that the parties acted as front companies for the North Korean regime, carrying out operations to launder money and convert it into cryptocurrency before transferring millions of dollars directly to Pyongyang, a city in North Korea.
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The money was reportedly obtained from cybercrime and IT workers, who contribute to North Korea’s weapons of mass destruction and ballistic missile programs.
The two men – Lu Huaying and Zhang Jian – reportedly used a UAE front company, Green Alpine Trading LLC, to conduct the operation. The sanctions freeze their US assets and make it illegal for Americans to do business with them.
The Treasury Department highlighted the importance of these illegal networks in financing North Korea’s military aspirations. Bradley Smith, Acting Under Secretary of State for Terrorism and Financial Intelligence, noted:
As the Democratic People’s Republic of Korea continues to use sophisticated criminal schemes to fund its weapons of mass destruction and ballistic missile programs — including through the exploitation of digital assets — the Treasury Department remains focused on disrupting the networks that facilitate the flow of funds into the regime.
Digital assets and cybercrime support finance
Notably, North Korean hackers have since become one of the major threats to cryptocurrencies as they are mostly linked to the majority of hacks in the industry.
South Korea’s Yonhap News Agency recently reported, citing the United Nations Security Council I mentioned North Korea’s cyber activities now contribute about 50% of its foreign currency earnings.
Much of this money is said to be used to fund weapons of mass destruction and other military programs. Although regulatory bodies and even cryptocurrency platforms are making efforts to combat these cybercriminals, hackers tend to upgrade their tactics along with security updates from the platforms.
In particular, North Korean hackers have so far become more adept at exploiting the cryptocurrency sector as well as in cybercrime to obtain foreign currency. One recently discovered tactic is that North Korean hackers impersonate senior executives or recruiters for cryptocurrency companies.
North Korean hackers stole billions of dollars in cryptocurrencies by posing as venture capitalists, employees, and IT workers. https://t.co/5mQwES2eqq
– TechCrunch (@TechCrunch) November 28, 2024
One example of this is when a member of the Lazarus Group pretended to be an executive at Fenbushi Capital, a Chinese blockchain asset management company. Using platforms like LinkedIn, unsuspecting users have been tricked into clicking on malicious links and giving hackers access to sensitive data.
🚨Watch out #Lazarus 🥷🇰🇵 Attack on the fake Fenbushi Capital company on LinkedIn! @fenbushi @SlowMist_Team @boshen1011 @VitalikButerin 👇 pic.twitter.com/cAjAcPqkNj
– 23pds (山哥) (@im23pds) April 29, 2024
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