US Department of Justice Seizes $500K in Cash and Cryptos From North Korean Hackers
- Lisa Monaco, the deputy attorney general for the US Department of Justice, said the FBI had discovered a new type of ransomware the hackers were using.
The US Department of Justice (DoJ) has reportedly confiscated $500,000 in cash and virtual currencies from hackers sponsored by the North Korean government. A CNN report said that Lisa Monaco (the department’s deputy attorney general) shared the news while delivering her speech at Fordham University, New York, on Tuesday.
Us law enforcement agents believe the funds were part of a ransom payment to the hackers from various American healthcare firms. However, they also think the hackers might be planning to use the funds to move other ransom payments offshore. Monaco said healthcare institutions in Colorado and Kansas were the primary target of these hackers.
US Department of Justice On Crypto Enabled Hacks
Last year, the hackers were decrypting these hospitals’ computer systems which they use to run their best equipment. US officials had to look into the matter due to constant reports from Kansas medical providers. Following the complaints, the FBI was able to identify a new kind of ransomware the hackers were using to hack these hospitals’ computer systems.
Hence, the FBI was able to back-trace the ransomware and track the receivers of the funds. Monaco added that the FBI traced the funds to a China-based firm. The North Korean hackers had hired this Chinese firm to help them launder their ransom funds.
The deputy attorney general encouraged all us-based firms to report similar cases to the law enforcement agency. The CNN report noted that the FBI, Treasury Department, and the Secret Service had received more detailed training on tracking crypto payments received by criminal groups.
Their training was beneficial in tracing these ransom funds for the North Korean hackers. In February this year, the FBI launched a new unit focusing on crypto-related crimes. Members of the unit were mainly crypto experts with experience in crypto-related anti-money laundering and blockchain analysis.
In March, US law enforcement agents stated that the Lazarus Group (a North Korea-sponsored hacker team) was behind the exploitation of $625 million worth of digital assets from Axie Infinity’s Ronin Bridge.
Side Notes
The DoJ has been involved in various ransomware seizures, especially crypto-linked ones, in the last 12 months. Hence, it wasn’t a surprise when it launched “the national crypto enforcement team” last October. A statement from the DoJ said the launch of the new task force became necessary following the Colonial pipeline attack in May 2021 by a cyber-criminal specializing in ransomware attacks.
Various reports claim that the group has received $90 million across multiple ransomware payments up until May 2021.
The DoJ has also made its recommendation following President Biden’s executive order on digital assets. The president had ordered all government-owned agencies to develop a regulatory framework for digital assets. One principal suggestion by the DoJ was that agencies within and outside the US must share relevant information related to crypto crimes.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
