New York: North Korea has recently funneled a staggering $147.5 million through the cryptocurrency mixer platform Tornado Cash, as revealed in a confidential report by United Nations sanctions monitors reviewed by the international news agency Reuters.
The revelation sheds light on the extent of illicit financial activities conducted by the secretive state, particularly in the realm of cybercrime and cryptocurrency theft.
This latest incident stems from a hack on the HTX cryptocurrency exchange late last year, part of a broader pattern of cyberattacks orchestrated by North Korea targeting digital currency platforms.
According to the UN monitors, their investigations have uncovered a total of 97 suspected North Korean cyberattacks on cryptocurrency firms spanning from 2017 to 2024, resulting in the theft of approximately $3.6 billion.
The $147.5 million laundered in March was directly linked to the HTX exchange breach, a connection established through data provided by crypto analytics firm PeckShield and blockchain research firm Elliptic.
In 2024 alone, the monitors have scrutinized 11 cryptocurrency thefts valued at $54.7 million, with suspicions arising that some of these attacks may have been facilitated by small crypto-related companies unknowingly employing North Korean IT workers.
These workers, operating abroad, reportedly contribute substantial income to the isolated nation, which continues to grapple with stringent international sanctions aimed at curbing its nuclear and missile programs.
Also Read | Poster Targets Pakistan Army Chief Outside UK High Commission Amid PoK Unrest
Despite being under UN sanctions since 2006, North Korea has persistently found ways to fund its prohibited activities, resorting to cybercrime and exploiting virtual currency mixers like Tornado Cash.
The US imposed sanctions on Tornado Cash in 2022, alleging its involvement in facilitating North Korean money laundering activities.
In a related development, two of Tornado Cash’s co-founders were charged in 2023 with facilitating over $1 billion in illicit transactions, including those for a North Korean cybercrime group.
Virtual currency mixers like Tornado Cash operate by blending cryptocurrencies from multiple users, obscuring the source and ownership of the funds, making them attractive tools for laundering stolen cryptocurrency.
Also Read | Ukraine Withdraws Troops from Parts of Kharkiv Region Amid Russian Offensive
Despite the gravity of these revelations, lawyers for Tornado Cash co-founder Roman Storm, who pleaded not guilty to US charges in September, have yet to respond to requests for comment.
The expiration of the UN sanctions monitors’ mandate at the end of April, due to a Russian veto against its renewal, posed a setback. However, some monitors managed to submit incomplete work, including findings on North Korea’s cryptocurrency activities, to the Security Council’s North Korea sanctions committee.
In addition to cyber theft, the monitors have been probing reports of Russia releasing $9 million of North Korea’s frozen assets and facilitating the opening of a North Korean account at a Russian bank in South Ossetia, purportedly to bolster Pyongyang’s access to international banking networks.
Moreover, ongoing maritime activities suggest continued arms trade between North Korea and Russia, with suspected weapon-laden ships traversing between North Korea’s Rajin port and Russian ports like Vladivostok and Vostochny.
China has also come under scrutiny, with reports indicating a North Korean vessel undergoing maintenance at China’s Ningbo port.
Also Read | Russian Strikes Leave Ukraine Reeling: Emergency Blackouts Enforced Across the Nation
Allegations have been made by the US and its allies that North Korea supplies weapons to Russia for use in the Ukraine conflict, a claim denied by both Moscow and Pyongyang, although both nations have pledged to deepen their military cooperation.
In a recent report, UN monitors confirmed that debris from a missile landing in Kharkiv, Ukraine, in January belonged to a North Korean Hwasong-11 series ballistic missile, underscoring North Korea’s persistent missile development efforts and potential involvement in global conflicts.
The evasion of UN sanctions by North Korea remains a pressing concern, with the monitors documenting 208 voyages by North Korean cargo ships suspected of offloading coal in Chinese waters, often through illicit ship-to-ship transfers.
Questions regarding enforcement and compliance with international sanctions have been raised, particularly with the presence of Chinese Coast Guard vessels in proximity to these transfers.
As per media reports, requests for comments from the Chinese mission to the UN regarding these findings have thus far gone unanswered.
