The thing about cyberattacks is that if the threat actors get paid via say ransomware or outright theft, they need to launder the money somehow so that they can spend it. Otherwise it would have been pointless to “acquire” the cash. Well a new report from The Record shows what the Lazarus Group based out of North Korea will do to launder money:
North Korea’s Lazarus hacking group allegedly has turned back to an old service in order to launder $23 million stolen during an attack in November.
Investigators at blockchain research company Elliptic said on Friday that in the last day they had seen the funds — part of the $112.5 million stolen from the HTX cryptocurrency exchange in November — laundered through the Tornado Cash mixing service.
The use of Tornado Cash stood out to Elliptic because the service was sanctioned by U.S. authorities in August 2022, prompting Lazarus actors to turn to another mixing service called Sinbad.io. The U.S. Treasury Department sanctioned Sinbad.io in November.
“Lazarus Group now appear to have returned to using Tornado Cash as a way to launder funds at scale and obfuscate their transaction trail,” Elliptic said, noting that the hackers sent the more than $23 million in about 60 transactions.
“This change in behavior and return to the use of Tornado Cash likely reflects the limited number of large-scale mixers now operating, thanks to law enforcement takedowns of services such as Sinbad.io and Blender.io,” the company said.
The researchers noted that Tornado Cash has been able to continue operating despite the sanctions because it runs on decentralized blockchains, meaning it “cannot be seized and shut down in the same way that centralized mixers such as Sinbad.io have been.”
Ken Westin, Field CISO, Panther Labs had this comment:
The Lazarus threat group from North Korea have been primarily targeting the crypto currency, financial services and cybersecurity industries. Their techniques focus primarily on developers through social engineering attacks to gain access to code repositories, devops and cloud infrastructure with the goal of gaining access to crypto wallets and accounts, as well as access to code and secrets. These attacks have proven to be quite lucrative, and by stealing cryptocurrency, has provided the North Korean regime a method to evade financial sanctions and further fund their military endeavors. This should be a bigger cause for concern for the the US government and its allies given the collaboration North Korea has with helping the Russian military, where it recently shipped 7K containers of munitions and other military supplies. Although the US has been cracking down on crypto currency mixing services, which are commonly used to launder money through crypto exchanges, North Korea has still been able to take advantage of the rising value of crypto currencies and continue to use these services to convert stolen crypto currency to fund their military operations.
This illustrates how hard it is so shut down avenues for groups like this one to launder money. That means that nations really have to redouble their efforts to make harder and harder for groups to launder money. That way it makes it less profitable for these groups.
Tornado Cash used in Lazarus Group’s latest money laundering
Posted in Commentary with tags North Korea on March 19, 2024 by itnerdThe thing about cyberattacks is that if the threat actors get paid via say ransomware or outright theft, they need to launder the money somehow so that they can spend it. Otherwise it would have been pointless to “acquire” the cash. Well a new report from The Record shows what the Lazarus Group based out of North Korea will do to launder money:
North Korea’s Lazarus hacking group allegedly has turned back to an old service in order to launder $23 million stolen during an attack in November.
Investigators at blockchain research company Elliptic said on Friday that in the last day they had seen the funds — part of the $112.5 million stolen from the HTX cryptocurrency exchange in November — laundered through the Tornado Cash mixing service.
The use of Tornado Cash stood out to Elliptic because the service was sanctioned by U.S. authorities in August 2022, prompting Lazarus actors to turn to another mixing service called Sinbad.io. The U.S. Treasury Department sanctioned Sinbad.io in November.
“Lazarus Group now appear to have returned to using Tornado Cash as a way to launder funds at scale and obfuscate their transaction trail,” Elliptic said, noting that the hackers sent the more than $23 million in about 60 transactions.
“This change in behavior and return to the use of Tornado Cash likely reflects the limited number of large-scale mixers now operating, thanks to law enforcement takedowns of services such as Sinbad.io and Blender.io,” the company said.
The researchers noted that Tornado Cash has been able to continue operating despite the sanctions because it runs on decentralized blockchains, meaning it “cannot be seized and shut down in the same way that centralized mixers such as Sinbad.io have been.”
Ken Westin, Field CISO, Panther Labs had this comment:
The Lazarus threat group from North Korea have been primarily targeting the crypto currency, financial services and cybersecurity industries. Their techniques focus primarily on developers through social engineering attacks to gain access to code repositories, devops and cloud infrastructure with the goal of gaining access to crypto wallets and accounts, as well as access to code and secrets. These attacks have proven to be quite lucrative, and by stealing cryptocurrency, has provided the North Korean regime a method to evade financial sanctions and further fund their military endeavors. This should be a bigger cause for concern for the the US government and its allies given the collaboration North Korea has with helping the Russian military, where it recently shipped 7K containers of munitions and other military supplies. Although the US has been cracking down on crypto currency mixing services, which are commonly used to launder money through crypto exchanges, North Korea has still been able to take advantage of the rising value of crypto currencies and continue to use these services to convert stolen crypto currency to fund their military operations.
This illustrates how hard it is so shut down avenues for groups like this one to launder money. That means that nations really have to redouble their efforts to make harder and harder for groups to launder money. That way it makes it less profitable for these groups.
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