Binance supported US authorities to freeze $4.4M linked to North Korea
A representative for Binance said when asked whether the firm has any other cooperative projects in the works that it is "constantly monitoring our platform for nefarious nation state actors and collaborating with law enforcement."
Binance, a cryptocurrency exchange, has acknowledged that it "aided US law enforcement" in the seizure of $4.4 million worth of cryptocurrency linked to North Korean cybercrime syndicates.
In a post on Twitter on May 25, Binance said that its Binance Investigations team collaborated with American law enforcement to thwart the "illicit revenue generation activities" of four North Korean organizations that are now sanctioned.
Binance assisted US law in freezing $4.4 million tied to North Korean cybercrime firms
Binance has confessed that it "aided US law enforcement" in the seizure of Bitcoin valued at $4.4 million connected to North Korean cybercrime syndicates. The Binance Investigations team worked with American law enforcement, according to a tweet from Binance on May 25, to block the "illicit revenue generation activities" of four sanctioned North Korean organisations.
According to the company, "We actively took action against accounts associated with these individuals more than a year ago, in compliance with lawfully served warrants and in cooperation with law enforcement."
When asked if the business is planning any other joint initiatives, a spokeswoman for Binance informed that the company is "constantly monitoring our platform for nefarious nation state actors and collaborating with law enforcement."
A statement released on May 23 by the Office of Foreign Assets Control of the Department of the Treasury, sanctions have been imposed against four businesses and one person for engaging in "malicious cyber activities that support the Democratic People's Republic of Korea (DPRK) Government."
The four organisations were the Technical Reconnaissance Bureau, the 110th Research Centre, the Chinyong Information Technology Cooperation Company, and Pyongyang University of Automation.
According to the Treasury, Chinyong is thought to have a "workforce of thousands of highly skilled IT workers around the world" who are responsible for producing "revenue that contributes to its illegal WMD and ballistic missile programmes."
These employees register for abroad IT employment, including as tech and crypto-related professions, using false or stolen identities, and then they utilise cryptocurrency exchanges to remit the money back to the DPRK.
Kim Sang Man (Kim), who is "presumed to be involved in the payment of salaries to family members of Chinyong's overseas DPRK worker delegations" and who received $2 million in cryptocurrency for selling IT equipment to DPRK-affiliated teams in China and Russia, is also named in the OFAC sanctions.
The Technical Reconnaissance Bureau, according to the Treasury Department, "leads the DPRK's development of offensive cyber tactics and tools and operates several departments, including those affiliated with the Lazarus Group."
In recent years, The Lazarus Group has invaded a number of cryptocurrency and blockchain initiatives. It is thought to have been behind the $620 million Ronin Bridge breach on Axie Infinity in March 2022.
Changpeng Zhao, the CEO of Binance, announced in late April that the company had acquired $5.8 million back from the Lazarus Group after discovering some of the illicit earnings travelling through the exchange.
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