North Korea has been very active when it comes to hacks over the past few years, and cryptocurrencies have come in handy. According to a former FBI analyst, this is going to get much worse.
Cybercrime from North Korea
That’s what Nick Carlsen stated during a panel discussion from the Center for a New American Security (CNAS) on Aug. 9. Carlsen is a former analyst with the Federal Bureau of Investigation (FBI), and now works as an analyst at blockchain research firm TRM Labs. Blockchain and cryptocurrencies have turned financial fraud on its head for good, he says.
“The theft is going to get worse. Cryptocurrencies will become much more of an accepted means of payment,” he stated. “North Korea seems to have gotten used to being the fighter, rather than the hunted.”
Jason Bartlett of the CNAS emphasizes that the country next to crypto mixers also uses foreign private brokers, so-called over-the-counter brokers (OTC brokers) to launder stolen money.
The United States and South Korea recently renewed their partnership against cybercrime from North Korea. They hope by joining forces and sharing data, North Korea can be made a lot more difficult. However, the ‘logistical and bureaucratic obstacles’ must be solved for this. However, the cooperation is not limited to North Korea.
The US government believes that the Asian dictatorship is financing one-third of its nuclear weapons program with stolen cryptocurrencies.
Mixers are banned
Earlier this week, the US Treasury Department also banned Bitcoin mixer Tornado Cash. Americans are now legally prohibited from using the service, which should further discourage criminal activity in the crypto industry and make it less attractive for North Korea to use this mixer.
The effectiveness of a mixer depends on the number of users; the more non-illegal activity such a mixer harbors, the easier it is for criminals to go unnoticed. Banning the service from regular residents can limit the activity to suspicious practices. That should discourage criminals. North Korea is said to have laundered about $7 billion in stolen assets using Tornado Cash since 2019.
