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Binance Helped US Authorities Freeze $4.4M Linked to DPRK Cybercrime Orgs.

A significant collaboration between Binance, the world’s leading cryptocurrency exchange, and US law enforcement seized $4.4 million worth of crypto assets linked to North Korean cybercrime syndicates. Binance’s proactive efforts to combat illicit activities and commitment to working with law enforcement agencies demonstrate the industry’s dedication to fostering a safe and secure crypto ecosystem.

Crypto exchange Binance recently made a remarkable disclosure on Twitter, announcing its role in aiding US law enforcement in curtailing the illicit revenue generation activities of four North Korean entities that have now been sanctioned. The company’s Binance Investigations team had taken proactive measures over a year ago, responding to lawfully served warrants and working collaboratively with law enforcement agencies.

Binance, known for its vigilant approach, continues to monitor its platform for any suspicious activities associated with nation-state actors. The company remains committed to ongoing collaboration with law enforcement agencies, ensuring the detection and prevention of nefarious activities.

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) stated on May 23, revealing the sanctioning of four entities and one individual involved in malicious cyber activities supporting the North Korean government. Among the entities is the Chinyong Information Technology Cooperation Company, which employs thousands of highly skilled IT workers worldwide, contributing to unlawful weapons of mass destruction (WMD) and ballistic missile programs.

These workers assume fake or stolen identities to evade further detection to secure overseas IT and crypto-related jobs. Payments received from these jobs are then funnelled back to North Korea through crypto exchanges, enabling money laundering on a large scale.

Additionally, Kim Sang Man (Kim), an individual included in the OFAC sanctions, is suspected of facilitating salary payments to Chinyong’s overseas worker delegations. Moreover, Kim received $2 million in cryptocurrency by selling IT equipment to DPRK-affiliated teams in China and Russia.

The Technical Reconnaissance Bureau identified as a key department within the DPRK’s offensive cyber operations, leads the development of cyber tactics and tools. It operates several branches, including those linked to the notorious Lazarus Group, responsible for multiple high-profile attacks on cryptocurrency and blockchain projects.

Binance’s recent success in recovering $5.8 million from the Lazarus Group demonstrates the exchange’s commitment to combating cybercrime. By identifying and blocking suspicious transactions, Binance is crucial in safeguarding the crypto community from further financial losses.

Binance’s collaboration with US law enforcement in seizing $4.4 million worth of crypto assets tied to North Korean cybercrime syndicates marks a significant victory in the ongoing fight against illicit activities in cryptocurrency. By proactively monitoring its platform and working closely with law enforcement, Binance reinforces its commitment to maintaining a secure and trustworthy environment for crypto traders and investors.

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