North Korean cybercriminals have been linked to a $19.5 million Bitcoin (BTC) and Ethereum (ETH) heist that decimated a United Kingdom-based instant exchange platform.
The UK’s Office of Financial Sanctions Implementation (OFSI) says in a new report that North Korean hackers targeted the exchange platform Lykke in June 2024.
“The primary method of laundering assets was through a no-KYC (know your customer) exchange. Funds that were stolen on the Bitcoin blockchain were bridged to the Ethereum network via Thorchain and then deposited into a no-KYC exchange.”
The UK regulator also notes that North Korean crypto hackers use highly liquid over-the-counter (OTC) services based in China, Cambodia and Russia to off-ramp stolen digital assets.
“In general, DPRK-linked actors make use of complex money laundering techniques involving a combination of decentralized and centralized exchanges, mixers/tumblers and privacy protocols, bridges, P2P services and highly liquid OTCs in third jurisdictions that offer a greater degree of anonymity to move stolen assets.
DPRK-linked actors may seek to clear exposure by off-ramping cryptoassets at centralized exchanges and OTC trading desks, particularly those that operate on the Tron blockchain. DPRK threat actors may also seek to exploit stablecoins, such as USDT and DAI, to allow them to interact with OTC desks in third jurisdictions, where they trade the stablecoins for fiat currency.”
A judge ordered Lykke to be liquidated in March following last year’s hack, The Telegraph reports.
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