US Moves To Seize 280 Cryptocurrency Accounts Linked To North Korean Hackers

The U.S. Department of Justice is seeking to seize 280 cryptocurrency accounts tied to North Korea.

In a statement, the Justice Department said these North Korea-affiliated hackers have stolen millions worth of cryptocurrency and tried to launder the money through over-the-counter trading desks in China.

The government had earlier disclosed details about two cases where two Chinese nationals stole cryptocurrency worth $250 million. Through the IRS’s cybercrime division, authorities were able to connect the North Korean hackers to a Chinese money laundering network.

According to a July 2019 complaint, a North Korea-affiliated hacker breached a cryptocurrency exchange and stole $270,000 worth of altcoins, said Cointelegraph. These altcoins were then transferred from one wallet to another and exchanged to other cryptocurrencies such as Bitcoin and Tether. This is done to obfuscate the transaction path.

In another incident, detailed in a complaint filed in September 2019, another North Korea-affiliated hacker stole $2.5 million worth of cryptocurrencies from over 100 accounts by hacking into U.S.-based cryptocurrency exchanges.

Both incidents have connections to the same over-the-counter trading desks in China. At the same time, the infrastructure and communication accounts used were also tied to North Korea, the Justice Department said.

The U.N. Security Council has imposed sanctions on North Korea to pressure the government into giving up its nuclear program. As cryptocurrencies exist outside the global financial system, it could prove to be a way to get funds.

Acting U.S. Attorney Michael R. Sherwin said the government will continue to target North Korea’s criminal attacks on the financial system. "This complaint reveals the incredible skill of our Cryptocurrency Strike Force in tracing and seizing virtual currency, which criminals previously thought to be impossible," he said in a statement.

FBI Special Agent in-charge Emmerson Buie Jr. said the government action demonstrates that North Koreans would not be able to hide their crimes within the anonymity of the internet. "International cryptocurrency laundering schemes undermine the integrity of our financial systems at a global level, and we will use every tool in our arsenal to investigate and disrupt these crimes," he added.