Crypto Money Laundering by North Korea: The Cash Tornado Case

In a crypto world often characterized by anonymity and security, North Korea's money laundering case is attracting global attention. According to a United Nations (UN) report, North Korea has laundered stolen crypto money worth USD 147.5 million or the equivalent of IDR 2.3 trillion through the Tornado Cash1 mixer platform.

Chronology of Theft and Money Laundering

In 2023, a North Korean hacker group succeeded in stealing funds from crypto exchange HTX. The illegal funds are then deposited into Tornado Cash, a platform that allows mixing crypto transactions to obscure traces of the origin and destination of the funds1. This action was taken in an effort to avoid detection by law enforcement.

Law Enforcement Actions

The UN has investigated 97 cyberattacks carried out by North Korea against crypto companies over the past seven years, with total losses reaching around USD 3.6 billion1. As of early 2024, UN investigators have investigated 11 thefts of crypto assets worth USD 54.7 million, allegedly linked to North Korean IT workers1.

International Impact and Reaction

This case raised international concerns regarding the security of crypto assets and their potential use for illegal activities. The United States has imposed sanctions on Tornado Cash in 2022 for its role in helping North Korea evade international sanctions1. In May 2024, Tornado Cash developer Alexey Pertsev was found guilty of money laundering and sentenced to five years and four months in prison1.

Conclusion

The case of money laundering by North Korea via Tornado Cash underscores the importance of transparency and security in the crypto ecosystem. This also shows that although blockchain technology offers many advantages, there are still risks that users and regulators must be aware of.

This article is prepared based on the latest facts and can be used as a reference to understand the complexity of the issue of money laundering in the crypto world.#GameFi $BTC $ETH