US law enforcement has cracked down at Chinese nationals who laundered $100 million in stolen crypto for North Korean hackers.
The hackers are exploiting Bitcoin's blockchain to hide their tracks.
Chainalysis' Philip Gradwell explains to Decrypt how they're doing it.
Recently, the US Department of Justice charged two Chinese nationals, Tian Yinyin and Li Jiadong, with laundering over $100 million worth of stolen cryptocurrencies to benefit their alleged co-conspirators in North Korea. The corresponding documents unsealed by the US government also indicate that Kim Jong-un’s state-sponsored hackers keep evolving their tactics, often employing so-called “peel chains” to cover their tracks.
Speaking to Decrypt, Philip Gradwell, the chief economist at blockchain analysis firm Chainalysis, explained that peel chains are a natural feature of “Unspent Transaction Output” blockchains, such as Bitcoin. This is because when value is transferred from one entity to another on a UTXO blockchain, a “change transfer” is almost always generated at the same time. Read More...