North Korea Laundered $147.5M Through Tornado Cash in March: UN Monitors

According to a report from Reuter, North Korea allegedly laundered $147 million through money mixing platform Tornado Cash in March. These funds were stolen from an attack on crypto exchange HTX in November 2023.

The findings came from the United Nations’ close monitoring of the on-chain activities of North Korean-backed hackers. As stated in the document submitted to the UN Security Council, the monitors have kept tabs on wallets linked to about 97 suspected cyber attacks (estimated to be worth $3.6 billion) by North Korea since 2017.

The report further revealed that the monitors were closely observing 11 attacks worth $54.7 million that North Korea had supposedly perpetuated since the start of the year. The UN monitors suspect North Korean IT employees employed by small crypto firms have been a loophole in these attacks.

North Korean ITs In Diaspora Aiding Attack

The UN monitors noted that most of North Korea’s crypto attacks were fueled by insider information provided by the country’s IT delegates in diaspora. They pointed out that the disguise employed by these IT workers fetches their country a substantial amount of cash inflow.

North Korea has been known for producing scammers who aim to bypass international sanctions on the country to earn foreign currencies. Notorious hackers like the Lazarus group, linked to the Ronin bridge exploit, are backed by North Korea.

Prosecutors Continue to Hunt Tornado Cash Developers

Federal prosecutors have continued their push to convict Tornado cash developers. They first sued and later arrested the mixing platform’s founders, Roman Semenov and Roman Storm, in 2023.

Cointab reported on Tuesday that the court in the Netherlands had sentenced another Tornado developer, Alexey Pertsev, to 64 months in prison. He was convicted on charges of aiding money laundering in excess of $1 billion.

Pertsev’s indictment further spells doom for Tornado Cash’s founders, Semenov and Storm, who are still awaiting trial. The attorneys representing Roman Storm have already pleaded not guilty to charges from US prosecutors but await the US judge’s verdict as the trial starts on September 23.