Trilateral Talks: US, South Korea & Japan Discuss N. Korean Crypto Thefts

• High-Level Security Discussions Over North Korea's Crypto Thefts
• Range of Trilateral Initiatives Reviewed
• North Korea's Crypto Thefts
• OFAC Sanctions and Actions
• Tornado Cash Listed as a Sanctioned Entity

High-Level Security Discussions Over North Korea's Crypto Thefts

High-ranking security officials from the United States, South Korea, and Japan held talks recently about North Korea's illicit activities in the realm of cryptocurrency and its continued development of nuclear and ballistic missile programs. This information was made public in a statement by the White House. Participants of the meeting held in Seoul, South Korea included U.S. National Security Advisor Jake Sullivan, Republic of Korea National Security Advisor Cho Tae-Yong, and Japan National Security Advisor Takeo Akiba. Among the issues they discussed was the behavior of the Democratic People's Republic of Korea (DPRK, the official name for North Korea) and its ongoing weapons of mass destruction program.

Range of Trilateral Initiatives Reviewed

The trio of National Security Advisors examined the progress on numerous trilateral initiatives, which included the Commitment to Consult on regional crises, the sharing of ballistic missile defense data, and collective efforts to counter the DPRK's use of cryptocurrency to generate income for its illicit weapons of mass destruction programs. They also deliberated on North Korea's relationship with Russia.

North Korea's Crypto Thefts

The theft of billions of dollars in cryptocurrency from various projects within the industry by North Korea has drawn the attention of several government bodies. The U.S. government has accused Lazarus Group, a notorious hacking entity linked to the DPRK, of stealing over $600 million from Axie Infinity's Ronin Bridge in the previous year.

OFAC Sanctions and Actions

Several mixers, deemed by the U.S. Treasury Department's Office of Foreign Asset Control (OFAC) to be used by North Korean hackers to move stolen funds, have been sanctioned. Recently, OFAC added two crypto addresses associated with the Sinbad mixer to the list. Sinbad's website was jointly seized by police officials from multiple nations.

The OFAC has also prohibited various wallet addresses and individuals from using the dollar-based global financial system, alleging that they helped North Korea launder stolen funds in support of its weapons program.

Tornado Cash Listed as a Sanctioned Entity

The most recognizable sanction from OFAC was against privacy tool Tornado Cash, alleging that over $100 million in stolen crypto has passed through the mixing service. Developers Roman Storm and Alexey Pertsev, associated with the project, are currently facing charges in the U.S. and the Netherlands respectively, connected to their work on Tornado Cash. Another developer, Roman Semenov, was charged with money laundering and sanctions violations, but has not been arrested yet. Storm's trial is scheduled to begin next year.

Edited by Jonathan Stoker