A preliminary report from a UN inquiry suggests North Korea is using the proceeds from crypto exchange hacks to funds its weapons programs.
February 10, 2021 | AtoZ Markets – The United Nations has accused North Korea of being involved in hacking crypto exchanges. According to a Reuters report, a report compiled by an expert panel of the UN Security Council’s North Korean Sanctions Committee “strongly suggests” a link between hacking crypto exchanges and North Korea.
“Analysis of the attack vector and subsequent attempts to launder fraudulent earnings strongly suggests a link with North Korea,” the report said.
According to Reuters, a UN report accuses North Korea of using cryptocurrencies that it hacked and stole for nuclear development in violation of UN sanctions.
Although the report itself doesn’t provide specific details about the affected exchanges, Reuters shares the views of Frank von Weert, a whale alert for crypto data analysis.
Chainalysis: North Korean responsible KuCoin crypto exchange hack
Weert speculates that the North Korean hack was a KuCoin hack last September. Cryptocurrency analysis firm Chainalyisis estimates that the outflow from KuCoin is $275 million. By the way, KuCoin has announced that it has recovered 80% of the outflow.
A UN report also points out that attackers have abused decentralized finance (DeFi), according to Reuters.
“Attackers have abused the” DeFi “protocol, a smart contract that facilitates automated trading.”
In a 2019 report, a UN expert panel estimates that it has generated a total of $2 billion through “widespread and increasingly sophisticated” cyberattacks targeting banks and cryptocurrencies.
A UN report also pointed out that a UN member state stole $ 316.3 million worth of cryptocurrencies between 2019 and November 2020.
Think we missed something? Let us know in the comment section below.