A notable issue within the cryptocurrency sector involves the relationship between North Korean hackers and Tornado Cash, a mixer service. An expert panel has potentially illuminated this connection, raising concerns across the market.
North Korea and Tornado Cash
United Nations experts monitoring North Korean activities have identified a link between the nation and Tornado Cash. According to a confidential report presented to the UN Security Council sanctions committee, North Korea utilized Tornado Cash to launder $147.5 million in hacked cryptocurrency during the first half of the year.
Despite the expert panel’s dissolution in April due to a Russian veto, their unfinished report indicated ongoing investigations into 97 suspected North Korean cyberattacks, targeting assets worth $3.6 billion in crypto companies. The report was disclosed on Friday.
Details of Crypto Attacks
Significant incidents include last year’s $147.5 million theft from the Seychelles-based crypto exchange HTX. The stolen assets were reportedly laundered using Tornado Cash in March, based on data from crypto analysis firm PeckShield and blockchain research firm Elliptic. Additionally, 11 crypto heists worth $54.7 million this year were attributed to North Korean IT workers hired by smaller crypto-related firms.
In 2022, the U.S. Treasury Department’s OFAC sanctioned Tornado Cash, citing over $7 billion in laundered cryptocurrency, including $455 million linked to the North Korean Lazarus Group. North Korea continues to leverage cyberattacks to fund its nuclear and missile initiatives, with the developer of Tornado Cash recently penalized.
Concrete Inferences from the Report
Valuable insights from the report include:
– North Korea’s sophisticated methods in laundering stolen crypto assets.
– The use of Tornado Cash as a critical tool in these laundering activities.
– The significant amount of $147.5 million laundered in the first half of the year.
– The ongoing threat posed by North Korean cyberattacks to the crypto industry.
– The potential misuse of IT workers in crypto firms to facilitate these attacks.
This report underscores the ongoing challenges and threats within the cryptocurrency market, highlighting the need for robust security measures and international cooperation to combat such sophisticated cyber threats.