Binance has cooperated\u00a0with US federal prosecutors to seize $4.4 million of crypto assets and freeze accounts connected to North Korean hacking groups. The move comes as North Korea\u2019s elite state-sponsored hackers increasingly turn to crypto thefts to fund the country\u2019s treasury.<\/p>\n
In a recent Twitter thread, the world\u2019s largest cryptocurrency exchange said that through its Binance Investigations team, it worked with law enforcement in the United States to hamper the \u201cillicit revenue generation activities\u201d of four now-sanctioned entities in North Korea.<\/p>\n
In a separate\u00a0statement, the Department of the Treasury\u2019s Office of Foreign Assets Control announced that it has sanctioned four entities and one individual engaged in \u201cmalicious cyber activities that support the Democratic People\u2019s Republic of Korea (DPRK) Government.\u201d<\/p>\n
The agency made no mention of Binance in the announcement. However, Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian Nelson, said the US and its \u201cpartners remain committed to combatting the DPRK\u2019s illicit revenue generation activities.\u201d<\/p>\n
The Treasury detailed that the four entities were the Chinyong Information Technology Cooperation Company, Pyongyang University of Automation, the 110th Research Center, and the Technical Reconnaissance Bureau.<\/p>\n
Chinyong is believed to maintain a \u201cworkforce of thousands of highly skilled IT workers around the world\u201d who are tasked with generating \u201crevenue that contributes to its unlawful WMD and ballistic missile programs,\u201d the federal department said.<\/p>\n
Blockchain, the technology that underpins cryptocurrencies, comes with some key features, one of which is transparency. In simple words, every transaction that occurs on the network is recorded in a digital ledger that is public and accessible to everyone.<\/p>\n
This feature eliminates the need for third-party intermediaries like banks and promotes trust between parties. On the flip side, transparency in blockchain technology makes it challenging for criminals to execute fraudulent activities.<\/p>\n
Criminals often use obscure financial networks to disguise their illegal activities, transfer funds secretly, and evade authorities. However, with blockchain technology, transaction records are always visible and accessible, making it easier for authorities to trace and detect suspicious activities.<\/p>\n
\u201cThe blockchain provides a tremendous amount of transparency, which enables law enforcement to uncover these types of crimes,\u201d Binance said, noting that blockchain\u2019s transparency provides an excellent solution for financial fraud detection, anti-money laundering, and terrorism financing.<\/p>\n
The blockchain provides a tremendous amount of transparency, which enables law enforcement to uncover these types of crimes. We work closely with authorities around the world every day to help prevent crimes and take action against bad actors.<\/p>\n
\u2014 Binance (@binance) May 24, 2023<\/p>\n
North Korean hacking groups account for a huge portion of illicit cyber activities. Moreover, state-sponsored hackers are deemed responsible for some of the largest cryptocurrency heists.<\/p>\n
According to a\u00a0report by blockchain analysis firm Chainalysis, North Korea-backed hackers stole $1.7 billion of crypto in 2022. The company noted that this figure is up by around 300% compared to the country\u2019s previous record of $429 million in 2021.<\/p>\n
In a separate report, blockchain security firm Elliptic revealed that North Korea had\u00a0stolen $2.3 billion\u00a0in cryptocurrency from businesses between 2017 and 2022. The bulk of that amount was stolen from Japan ($721m), followed by Vietnam ($540m), the U.S. ($497m), and Hong Kong ($281m), the study showed.<\/p>\n
Additionally, the US government has claimed that the Lazarus hacking group from North Korea is to\u00a0blame for the Axie Infinity Ronin blockchain hack, where they made off with around $625 million worth of Ethereum and USDC.<\/p>\n
North Korea, however, has disputed such allegations, repeatedly denying any intentions of hacking crypto and refuting the accusations against the Lazarus group. The group has previously been accused of masterminding several hacking episodes, including the 2014 hack of Sony Pictures and the 2017 Wannacry ransomware attacks.<\/p>\n
In another collaboration with law enforcement, Binance has recently announced plans to remove privacy tokens from its platform for users in France, Italy, Poland, and Spain starting June 26. The decision impacts a total of 12 tokens, including popular cryptocurrencies like Monero (XMR), Zcash (ZEC), and Dash (DASH).<\/p>\n
This article originally appeared on The Tokenist<\/i><\/p>\n
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