Crypto News – UN Report: North Korea Utilizes Tornado Cash to Divert 147.5M Dollars in HTX Loot

North Korea’s Alleged Use of Tornado Cash: UN Investigates $147.5M HTX Theft

Crypto News- Confidential UN findings obtained by Reuters reveal the intricate web spun by North Korean entities to launder nearly $150 million in stolen cryptocurrencies. According to the report, the Lazarus Group, notorious cyber attackers linked to the North Korean regime, orchestrated the transfer of pilfered digital assets using the privacy protocol Tornado Cash.

From Heist to Hideout: How $147.5M in Cryptocurrency Vanished into North Korea’s Shadow

The operation traces back to March 2023 when hackers infiltrated HTX, a crypto exchange founded by Justin Sun, and made off with $147.5 million in various cryptocurrencies. A year later, utilizing Tornado Cash, the stolen funds were stealthily funneled back to North Korea, evading detection and tracing attempts.

Tornado Cash, a crypto mixing service, offers anonymity to illicit actors by obfuscating the origin and destination of digital assets, making tracking nearly impossible. This clandestine method has become a go-to tool for cybercriminals seeking to launder stolen funds with impunity.

UN Unveils North Korea’s Cybercrime Spree: $3.6B Cryptocurrency Heist Epidemic

The UN investigation extends beyond this single incident, probing 97 cyberattacks attributed to North Korea, totaling $3.6 billion in stolen cryptocurrencies between 2017 and 2024. The report underscores the growing threat posed by state-sponsored cybercrime to the global financial ecosystem.

Amid mounting scrutiny, Tornado Cash and its developers have faced legal repercussions. Alexey Pertsev, the mind behind the protocol, recently received a five-year, four-month prison sentence for alleged money laundering activities amounting to $1.2 billion. This landmark ruling raises significant concerns regarding the accountability of open-source code contributors in facilitating illicit activities.

However, North Korea is not the sole perpetrator utilizing Tornado Cash for nefarious purposes. Recent findings by blockchain investigation firm PeckShield uncovered the transfer of $53 million in stolen Ether linked to the Poloniex hack to Tornado Cash. This incident underscores the widespread adoption of crypto mixing services within the global hacker community, posing a persistent challenge to law enforcement agencies worldwide.

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