North Korean IT Specialists Caught Laundering State Funds via Cryptocurrency
A group of North Korean IT specialists has been arrested for hacking into two state banks' internal networks and laundering stolen assets through cryptocurrency. The participants, who were former military personnel from the country's cyber intelligence units, recruited graduates from Kim Chaek University and Pyongyang University of Science and Technology.
The group gained access to the Central Bank of North Korea and the Foreign Trade Bank, as well as the international settlement system. To bypass controls, they used Chinese wireless equipment and encrypted messaging apps.
The money was transferred in small amounts to overseas crypto wallets through Chinese brokers, who converted the assets into cryptocurrency. The funds were then moved to the border cities of Sinuiju and Hyesan, where they were exchanged for cash in dollars and yuan.