Two Chinese involved in a $ 250M theft on a crypto-exchange

The United States impose sanctions against dthem Chinese citizens accused of laundering crypto-currencies stolen by a group of North Korean pirates, Lazarus Group. The hackers have stolen for $ 250 million during a cyberattack in 2018 against a crypto-scholarship.

The North Korean authorities accused of launching computer attacks to steal crypto-currencies and thus bypass international sanctions. And to carry out these cyberattacks, they rely in particular on group hackers Lazarus.

These pirates are thus accused of an intrusion in 2018 into the computer system of a exchange, a cryptocurrency exchange like Bitcoin, whose name is not mentioned. Value of stolen loot: $ 250 million.

Bitcoin changed to Apple gift cards

According to an investigation by the Office of Foreign Assets Control (OFAC), an American agency attached to the Department of the Treasury, two Chinese citizens are accused of having "provided material aid, sponsorship or financial, material or technological support" to this cyber attack.

Tian Yinyin and Li Jiadong are therefore subject to American sanctions. The United States estimates that it has been entrusted by the North Korean authorities with the control of accounts containing 91 million dollars.

This money corresponds to part of the cryptocurrencies stolen in 2018 from an exchange. The task of the two men would then have been to launder this money.

Tian and Li transferred the money between the addresses they held, thus masking the source of the funds, "said OFAC.

Among these movements, investigators find that Tian transferred the equivalent of more than $ 34 million of these illicit funds into a new bank account associated with an exchange. The latter is also accused of having traded for $ 1.4 million Bitcoin in gift cards prepaid Apple iTunes.

Threats of sanctions against financial institutions

However, specifies the OFAC, with certain exchanges, these cards can be used to buy Bitcoin again. This allows individuals to launder money by concealing the source of funds.

As a result, the two foreign citizens are subject to sanctions. The United States announces that all of its property and interests in the country "must be blocked and reported to OFAC. Anyone who deals with the accused can be prosecuted himself.

In addition, any foreign financial institution that knowingly facilitates a major transaction or provides important financial services to one of the persons designated today could be subject to corresponding account sanctions in the United States or financial sanctions, ”warns the American agency.