US charges North Korean hackers found in US$1.3 billion theft scheme
18 February, 2021
The US Justice Department charged three North Korean army intelligence officials on Wednesday (Feb 17) in a campaign of cyberattacks to steal US$1.3 billion in crypto and traditional currencies from banks and different targets.
The first action against Pyongyang by President Joe Biden's administration took aim at what the section called "a worldwide campaign of criminality" being waged by North Korea.
The section accused the three of a wide-ranging hacking and malware procedure to obtain funds because of their government while avoiding punishing UN sanctions that contain cinched off its sources of income.
At least seven years, the officials created malicious cryptocurrency applications that opened again doors into targets' computers; hacked into companies marketing and trading digital currencies like bitcoin; and created a blockchain platform to evade sanctions and secretly increase funds, the section said.
The case filed in federal court in LA builds on 2018 charges against among the three, identified as Recreation area Jin Hyok.
He was charged with the 2014 hack of Sony pics, the creation of the notorious WannaCry ransomware, and the 2016 theft of US$81 million from the central lender of Bangladesh.
The new charges added two defendants, Jon Chang Hyok and Kim Il.
The allegations said the three worked together in the North Korean military intelligence's hacking-focused Reconnaissance Basic Bureau, better known within the cybersecurity community as the Lazarus Group, or APT 38.
In addition to the earlier fees, the three allegedly operated out of North Korea, Russia and China to hack computers using spearfishing approaches, and promote cryptocurrency applications packed with malicious application that allowed them to empty victims' crypto wallets.
In a 2018 scheme, they robbed US$6.1 million from ATM devices from Pakistan's BankIslami after gaining usage of its computer network.
The Justice Department did not specify exactly just how much it believed the defendants have stolen altogether.
'KEYBOARDS RATHER THAN GUNS'
In addition, the expenses said, Kim Il developed the blockchain-based digital currency-like "Marine Chain Token" which ostensibly was a musical instrument for investors to get shares of delivery vessels.
He marketed opportunities to invest in the scheme on Singapore, without telling potential shareholders that it had been mainly made to hide ship ownership identities to greatly help North Korea avoid sanctions, the charges said.
All of the actions, the Justice Section said, were to "further the strategic and financial pursuits of the (North Korean) government and its head, Kim Jong Un."
"North Korea's operatives, employing keyboards rather than guns, stealing digital wallets of cryptocurrency rather than sacks of cash, will be the world's leading bank robbers," said Assistant Lawyer Standard John Demers in a statement.
"Nation-state indictments such as this are an significant step in identifying the trouble, calling it away in a legally rigorous format, and building worldwide consensus," Demers said.
In parallel, the department announced that Ghaleb Alaumary of Mississauga, Canada, had pleaded guilty to 1 charge of acting as a money launderer for the North Koreans.
Alaumary helped request money to be taken off ATMs hacked by the North Korean procedure.
He was also, the section said, a "prolific" funds launderer for additional hackers engaged found in ATM cash-out schemes, cyber-enabled bank theft, and fraud schemes based on hijacking companies' email.
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