Three U.S. Senators, Elizabeth Warren, Tim Kaine, and Chris Van Hollen, have jointly expressed concerns about North Korea’s use of cryptocurrency to fund its nuclear program and evade sanctions.
In an effort to address this issue, they sent a letter to the White House and Treasury Department, seeking information on the U.S. government’s actions against the illicit use of digital assets by the Democratic People’s Republic of Korea.
The senators highlighted that North Korea has been steadily developing its expertise in handling digital assets over the past few years, enabling them to become adept at using cryptocurrencies for nefarious purposes.
Reports indicate that North Korean hackers have been responsible for stealing over $3 billion worth of cryptocurrencies since 2018.
These stolen funds have allegedly been funneled into the country’s missile program, raising serious security concerns.
The problem lies in the hackers’ use of mixing services, a technique employed to obfuscate the origin of funds and hinder authorities’ ability to trace them.
By utilizing these mixers, the hackers attempt to avoid detection and further enable their illegal activities.
The U.S. Treasury Department’s Office of Foreign Assets Control has also expressed concern about cryptocurrency being used to finance North Korea’s nuclear ambitions.
As a result, the department added Tornado Cash, a digital asset service, to its list of sanctioned entities in November 2022.
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Senator Warren has been at the forefront of efforts to combat the illicit use of cryptocurrencies. She has previously drawn attention to the connection between digital asset payments and Chinese companies supplying precursors for opioid fentanyl production.
Additionally, Warren has proposed legislation to impose stricter Anti-Money Laundering requirements on cryptocurrency transactions.
In her latest endeavor, she joined a bipartisan group of senators advocating provisions against crypto mixers and privacy coins in the National Defense Authorization Act.
The Senators’ letter to the White House and Treasury Department underscores the urgency of addressing North Korea’s exploitation of cryptocurrencies.
By requesting information on the government’s actions, they aim to find effective strategies to crack down on these illegal activities and prevent further funding of North Korea’s nuclear program through digital assets.
The response from the administration will be critical in shaping future policies and initiatives to safeguard against such threats posed by the misuse of cryptocurrencies.
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