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Writer's picturemeowdini
May 162 min read

North Korea's Crypto Laundering Exposed: UN Report Reveals Millions Siphoned Through Tornado Cash

The United Nations (UN) has exposed a fresh attempt by North Korea to circumvent international sanctions, this time using cryptocurrency to fund its nuclear and missile programs. A confidential report obtained by Reuters details North Korea's laundering of a staggering $147.5 million through the controversial crypto-mixing platform Tornado Cash.




UN Report Uncovers North Korea's Crypto Crimes


  • Cyberattacks and Crypto Theft: The report, compiled by UN sanctions monitors, reveals a pattern of cyberattacks targeting cryptocurrency companies. Investigators identified 97 suspected attacks by North Korean hackers between 2017 and 2024, highlighting their persistent efforts to exploit vulnerabilities in the crypto space.


  • HTX Exchange Hack and Tornado Cash Laundering: The report dives deeper into a specific incident – the theft of $147.5 million from the HTX cryptocurrency exchange in late 2023. This stolen fortune was then funneled through Tornado Cash in March 2024, a platform designed to obfuscate the origin and ownership of crypto transactions.


  • Crypto Analytics Firms Play a Role:  The report leverages data and insights from blockchain analysis firms like PeckShield and Elliptic. This collaboration highlights the growing role of crypto intelligence firms in identifying illicit activities on the blockchain.


Tornado Cash: A Sanctioned Platform Aiding North Korea?


  • US Sanctions and Money Laundering Allegations:  The UN report's findings add weight to previous accusations against Tornado Cash. The platform was sanctioned by the US in 2022 over concerns that it facilitated money laundering activities, including those linked to North Korea.


  • Co-founders Charged:  Further bolstering the case against Tornado Cash, two of its co-founders faced charges in 2023 for allegedly enabling over $1 billion in money laundering, including transactions connected to a cybercrime group with ties to North Korea.



North Korea's Evolving Tactics and the Challenge of Enforcement


  • Beyond Crypto: Arms Trade Concerns:  The UN report goes beyond crypto, also raising concerns about North Korea's continued arms trade with Russia. The movement of suspicious cargo containers between North Korean and Russian ports suggests ongoing defiance of sanctions.


  • Evolving Strategies, Ongoing Challenges: This report underscores North Korea's constant attempts to circumvent sanctions through ever-evolving tactics. The effective enforcement of sanctions requires international cooperation and continuous adaptation to new methods used by rogue nations.


The Takeaway

The UN report serves as a stark reminder of the challenges in enforcing international sanctions. North Korea's exploitation of cryptocurrency and its continued arms trade highlight the need for robust international cooperation and innovative strategies to address these evolving threats.


Short Description

UN report exposes North Korea laundering millions through crypto mixer Tornado Cash. The regime stole funds from a crypto exchange and used crypto to bypass sanctions on its nuclear program.


Source: Reuters

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