British multinational BAE Systems and the Society for Worldwide Interbank Financial Communications (SWIFT) released a report revealing how cybercriminals laundered cryptocurrencies.

Cases of cryptocurrency money laundering are still relatively small compared to the huge amounts of money laundered through traditional methods such as bank transfers, according to the Follow the Money survey.

But there are some notable examples, and the report describes the money laundering techniques used by the Lazarus Group, a notorious pirate gang sponsored by North Korea.

Lazarus usually steals cryptocurrency money from the exchange and then begins transferring transactions across several different exchanges using what is known as “layered technology”.

The hackers hire middlemen from East Asia who receive a portion of the stolen money to help launder it. The study said that these intermediaries transfer cryptocurrencies to multiple addresses they own to “hide the origin of the funds.”

Brokers transfer some of the money received through new bank accounts linked to their swap account – this makes it possible to convert the cryptocurrency into fiat currency. Other Bitcoin stolen funds can be transferred to prepaid gift cards that can be used on other exchanges to purchase additional Bitcoins. ”

Cointelegraph recently reported that Lazarus attacked crypto talent and blockchain talent via the large professional social networking site LinkedIn.

Source: CoinTelegraph

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