In accordance with the most recent reports, the US has made efforts to disrupt illicit crypto-related networks that support North Korea’s government, announcing sanctions against two individuals and one entity within the United Arab Emirates (UAE).

The US Treasury Department particularly said the parties acted as front corporations for the North Korean regime that performed operations to launder money and convert it into cryptocurrency before transferring thousands and thousands of dollars directly back to Pyongyang, a city in North Korea.

The Perpetration

Reportedly, the funds were obtained from cybercrimes and IT staff, which contribute to North Korea’s weapons of mass destruction (WMD) and ballistic missile programs.

The 2 men — Lu Huaying and Zhang Jian — reportedly used a UAE front company, Green Alpine Trading LLC, to conduct the operation. The sanctions block their US assets and make it illegal for Americans to do business with them.

The Treasury Department highlighted the importance of those illegal networks in funding North Korea’s military aspirations. Bradley Smith acting Under Secretary for Terrorism and Financial Intelligence noted:

Because the DPRK continues to make use of complex criminal schemes to fund its WMD and ballistic missile programs — including through the exploitation of digital assets — Treasury stays focused on disrupting the networks that facilitate this flow of funds to the regime

Digital Assets and Cybercrimes Underpin Funding

Notably, North Korean hackers have since been one in all the key threats to crypto as they’re mostly linked to the vast majority of the hacks within the industry.

Citing the United Nations Security Council, the South Korean Yonhap News Agency recently reported that North Korean cyber activities now contribute about 50% of its foreign currency earnings.

Much of this money is reportedly used to fund WMD and other military programs. Although regulators and even crypto platforms make efforts to combat these cybercriminals, hackers are likely to upgrade their tactics together with security updates from platforms.

Particularly, North Korean hackers have now thus far develop into more expert at exploiting the crypto sector and in addition at cybercrime to acquire foreign currency. One recently discovered approach is that North Korean hackers impersonate top executives or recruiters for crypto corporations.

North Korean hackers have stolen billions in crypto by posing as VCs, recruiters and IT staff https://t.co/5mQwES2eqq

— TechCrunch (@TechCrunch) November 28, 2024

An instance is where a member of the Lazarus Group posed as an executive at Fenbushi Capital, a Chinese blockchain asset management company. Using platforms reminiscent of LinkedIn, unsuspecting users were tricked into clicking malicious links and giving the hackers access to sensitive data.

🚨Be careful for the #Lazarus 🥷🇰🇵 attack on the fake Fenbushi Capital on linkedin! @fenbushi @SlowMist_Team @boshen1011 @VitalikButerin 👇 pic.twitter.com/cAjAcPqkNj

— 23pds (山哥) (@im23pds) April 29, 2024

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