US Indicts Two Chinese for $100 Million Crypto Laundering
- The funds were obtained by attacks on crypto exchanges by North Korean co-conspirators.
The United States Department of Justice has charged two Chinese nationals for laundering $100 million in digital currencies obtained from the hack of a crypto Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term.
Announced on Monday, the accused, named Tian Yinyin and Li Jiadong, were charged with "money laundering conspiracy and operating an unlicensed money transmitting business."
The authorities also revealed that the attacks on the exchanges were carried out by hacking groups with North Korean ties. However, the name of the breached exchange was not revealed.
Links to North Korea
The press release detailed that the breach on the unnamed exchanges resulted in the theft of $250 million in cryptocurrencies in 2018. The perpetrators then channeled these funds through hundreds of automated cryptocurrency transactions aimed at preventing law enforcement from tracing the funds.
Moreover, the North Korean co-conspirators also circumvented multiple virtual currency exchanges' know-your-customer controls by submitting doctored photographs and falsified identification documentation.
The two accused laundered the hefty sum between December 2017 and April 2019, operating through independent as well as linked accounts and provided virtual currency transmission services for a fee to customers, the press release detailed.
The civil forfeiture complaint also specifically named 113 virtual currency accounts and addresses that were used by the defendants and unnamed co-conspirators to launder funds.
The law enforcement is now trying to recover the ill-gotten funds, and successfully seized a portion of it.
"North Korea continues to attack the growing worldwide ecosystem of virtual currency as a means to bypass the sanctions imposed on it by the United States and the United Nations Security Council. IRS-CI is committed to combating the means and methods used by foreign and domestic adversaries to finance operations and activities that pose a threat to U.S. national security," Don Fort, internal revenue service-criminal investigation (IRS-CI) chief, said.
The United States Department of Justice has charged two Chinese nationals for laundering $100 million in digital currencies obtained from the hack of a crypto Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term.
Announced on Monday, the accused, named Tian Yinyin and Li Jiadong, were charged with "money laundering conspiracy and operating an unlicensed money transmitting business."
The authorities also revealed that the attacks on the exchanges were carried out by hacking groups with North Korean ties. However, the name of the breached exchange was not revealed.
Links to North Korea
The press release detailed that the breach on the unnamed exchanges resulted in the theft of $250 million in cryptocurrencies in 2018. The perpetrators then channeled these funds through hundreds of automated cryptocurrency transactions aimed at preventing law enforcement from tracing the funds.
Moreover, the North Korean co-conspirators also circumvented multiple virtual currency exchanges' know-your-customer controls by submitting doctored photographs and falsified identification documentation.
The two accused laundered the hefty sum between December 2017 and April 2019, operating through independent as well as linked accounts and provided virtual currency transmission services for a fee to customers, the press release detailed.
The civil forfeiture complaint also specifically named 113 virtual currency accounts and addresses that were used by the defendants and unnamed co-conspirators to launder funds.
The law enforcement is now trying to recover the ill-gotten funds, and successfully seized a portion of it.
"North Korea continues to attack the growing worldwide ecosystem of virtual currency as a means to bypass the sanctions imposed on it by the United States and the United Nations Security Council. IRS-CI is committed to combating the means and methods used by foreign and domestic adversaries to finance operations and activities that pose a threat to U.S. national security," Don Fort, internal revenue service-criminal investigation (IRS-CI) chief, said.