North Korea has been repeatedly accused of using cryptocurrencies to evade sanctions put on by the USA and the UN. On 2nd March, the Department of Justice charged Tian Yinyin and Li Jiadong with laundering over $100 in cryptocurrencies to benefit North Korean co-conspirators.
Phishers used ‘peel chains’ to hide large crypto-deposits.
According to the blockchain analysis firm, CipherTrace, the phishers used ‘peel chains’ to hide large crypto-deposits. Cybercriminals use peel chains to avoid unwanted attention that comes with making a single, large deposit to an exchange. The report further reveals that the pair also used peel chains to successfully launder funds from two other exchanges hacks believed to be perpetrated by North Korean hackers.
Cybercriminals used fake IDs to circumvent the KYC process.
According to the report, the IRS-CI investigation found that the North Korean co-conspirators used fake IDs and manipulated photos to circumvent the KYC procedures at several exchanges. Two Chinese nationals that were arrested by the US officials were able to exploit KYC processes implemented by exchanges successfully. North Korea has a history of using cryptocurrency for nefarious activities. The Kim Jong-un regime has been accused of using crypto to fund its ballistic missile programs.