US to seize cryptocurrency from North Korea-linked accounts

The U.S. Department of Justice has filed a civil forfeiture complaint seeking to seize funds from 280 cryptocurrency accounts. The department ties them to hacks carried out by North Korean hackers.

United States Files Complaint to Forfeit 280 Cryptocurrency Accounts Tied to Hacks of Two Exchanges by North Korean Actors https://t.co/ml6YsnMuBl

— Justice Department (@TheJusticeDept) August 27, 2020

According to the statement, the investigation has been ongoing since 2018 and focuses on a series of attacks on cryptocurrency exchanges in South Korea. Affected also mentioned is an ‘American company focused on blockchain Algorand’ [implied Algo Capital], which lost $2.5 million.

473880798 Filed Stamped Copy Complaint 20cv2396 0 by ForkLog on Scribd

According to the U.S. Attorney’s Office for the District of Columbia, the stolen funds were laundered through a number of unnamed cryptocurrency exchanges as well as over-the-counter traders from China.

“The suit publicly exposes the links between North Korea’s hacking program and China’s cryptocurrency money-laundering network,” said Brian Rabbitt, Acting Assistant Attorney General.

The court filing lays out, in detail, the schemes behind each incident, showing the flow of funds from attack targets to money-laundering points.

The department’s release also mentions an “cryptocurrency strike team,” to which Acting U.S. Attorney Michael Sherwin attributed a key role in the investigations.

Earlier this year the UN Security Council said that North Korea stole about $2 billion through cyberattacks on cryptocurrency exchanges and banks to fund weapons of mass destruction programmes. The UN also noted that the money was laundered through Marine China in Hong Kong. North Korea has denied all allegations.

In May, Forklog reported increased activity by the North Korea-linked Lazarus hacking group in stealing cryptocurrency amid the pandemic.

According to the U.S. Army, North Korea employs more than 6,000 hackers worldwide.

Subscribe to ForkLog news on VK!