$147.5M Stolen Cryptos Linked to North Korea Laundered via Tornado Cash

The North Korean perpetrators reportedly laundered stolen cryptos through Tornado Cash crypto mixer in March, UN sanctions monitor noted.

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In Detail:

Reports reveal that North Korea has been involved in laundering approximately $147.5 million in stolen cryptocurrency from an exchange through the Tornado Cash platform. According to a Reuters report, this incident occurred in March, as stated in a confidential document submitted to the U.N. Security Council sanctions committee by UN sanctions monitors on Friday.

UN sanctions monitors investigated 97 cyberattacks on crypto firms executed by North Korean suspects over the past seven years, resulting in an estimated $3.6 billion in damages. Specifically, in 2024, North Korea is believed to be responsible for 11 cryptocurrency thefts worth a combined $54.7 million. Interestingly, these attacks may have been carried out by DPRK IT workers inadvertently hired by small crypto-related companies, per the document.

Among these incidents is the infamous hack of the HTX crypto exchange in 2023, which resulted in the theft of $147.5 million worth of cryptocurrency. Based on reports from the blockchain forensics firm Elliptic, North Korea's Lazarus Group was involved in the attack, stealing $112.5 million in cryptocurrency from the HTX exchange and its cross-chain bridge, HECO Bridge. Since March 13, 2024, over $100 million from this hack has been laundered through Tornado Cash, as flagged by Elliptic.

Tornado Cash is a cryptocurrency mixing service that enhances privacy and anonymity by combining potentially identifiable transactions with others, rendering the task of tracing the original source nearly impossible. Due to its association with illicit activities, the US government sanctioned Tornado Cash in 2022, designating it as a money-laundering tool commonly utilized by North Korean cybercriminals. This action forms part of a broader program to regulate digital platforms used for financial fraud.

Following these revelations, the global community has intensified its scrutiny and restrictions against Tornado Cash, widely recognized as a preferred platform for hackers attempting to conceal the origins of ill-gotten funds. Regulatory actions include sanctions imposed by the US government in 2022, accusing Tornado Cash of facilitating criminal activities, including the laundering of over $1 billion.

Despite the sanctions, however, Tornado Cash has continued to be implicated in money laundering operations, showcasing the challenges faced in controlling decentralized cryptocurrency technologies. Even though North Korea hasn't responded to the U.N.'s expert report, it sheds light on the country's advanced cyber capabilities and its ability to circumvent international sanctions using digital currencies.

This situation emphasizes the necessity of improved security measures and oversight in the cryptocurrency space to mitigate the impact of such malicious acts. More importantly, cooperation among countries and organizations is imperative in addressing these issues collectively and implementing effective countermeasures to prevent similar occurrences in the future.