US Seizes $500K in Crypto Paid as Ransom to North Korean Hackers
Brian Njuguna Jul 19, 2022 22:05
The U.S. Justice Department has revealed seizing crypto funds worth $500,000 used to pay ransom to North Korean hackers after the FBI filed a sealed seizure warrant in May.
The U.S. Justice Department has revealed seizing crypto funds worth $500,000, which were paid as a ransom to North Korean hackers. The seizure was conducted after the FBI filed a warrant in May this year.
The seized funds were paid as a ransom by health care providers in Colorado and Kansas.
Lisa Monaco, the deputy attorney general, stated:
“Thanks to rapid reporting and cooperation from a victim, the FBI, and Justice Department prosecutors have disrupted the activities of a North Korean state-sponsored group deploying ransomware known as ‘Maui.’”
Monaco added:
“Not only did this allow us to recover their ransom payment as well as a ransom paid by previously unknown victims, but we were also able to identify a previously unidentified ransomware strain.”
Based on court documents, North Korean hackers used Maui to wreak havoc by encrypting servers and files of a medical centre in Kansas, which later paid a ransom of approximately $100K in Bitcoin (BTC) to regain access.
In April 2022, the FBI was able to track a Bitcoin payment worth $120K to one of the seized crypto accounts based on the cooperation of the Kansas medical centre.
The recovered funds are expected to be returned to the victims. Matthew Olsen, an assistant attorney general, acknowledged:
“Reporting cyber incidents to law enforcement and cooperating with investigations not only protects the United States, but is also good business. The reimbursement to these victims of the ransom shows why it pays to work with law enforcement.”
Meanwhile, a recent Chainalysis report revealed that the rising usage of crypto mixers was drawing public attention, with illicit activities like scams, ransomware, terrorism financing, and the darknet market taking the lion’s share.
The blockchain analytic firm noted:
“The increase in illicit cryptocurrency moving to mixers is more interesting, though. Illicit addresses account for 23% of funds sent to mixers so far in 2022, up from 12% in 2021.”
Mixers offer enhanced privacy in crypto transactions, and they can be abused by cybercriminals and hackers when hiding the origin of the funds.
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