A North Korean enterprise transfers an unauthorized gambling platform to criminal hackers in South Korea.
A North Korean tech firm, Gyonghung Information Technology, situated in the Chinese border town of Dandong, is suspected of raking in $5,000 (approximately €4,641) from an unnamed South Korean criminal group for developing an illicit gambling site. The company reportedly earned an additional $3,000 (approximately €2,785) monthly to run the clandestine online gaming platform.
Payments via Chinese banks and PayPal - Additional Incentives
As per a TheKoreaTimes report [Link in English], South Korean cybercriminals offered additional incentives to Gyonghung Information Technology, ranging from $2,000 (approximately €1,852) to $5,000 (approximately €4,630), based on the number of players depositing funds via Chinese bank accounts or PayPal on the illicit gambling site. The South Korean National Intelligence Service (NIS) provided commentary on the situation in Dandong:
Dandong has evolved into a hub for clothing production in China, utilizing North Korean labor, and North Korean IT organizations, established to gather dollars, blended among the North Korean workers in the region, to illegally amass foreign currency.– National Intelligence Service (NIS), TheKoreaTimes
Online Casino Hack and Money Laundering in Manila
North Korea has been frequently associated with cybercrime. According to the FBI, a North Korean state-backed organization was behind the online casino heist of gambling provider Stake.com, resulting in the theft of around €38 million in cryptocurrencies.
North Korean organizations have previously utilized online casinos and cryptocurrency exchanges for money laundering purposes. In 2016, the Lazarus hacker group, under the control of the North Korean government, used a casino in Manila to launder $50 million (approximately €46 million) from cybercrime. In total, the Lazarus group pilfered nearly $1 billion. However, law enforcement agencies largely managed to prevent the transfer of laundered funds to North Korean bank accounts.
What part does North Korean leader Kim Jong Un play?
The NIS surmises that Gyonghung Information Technology is governed by North Korea's Bureau 39 of the ruling party. Bureau 39 is responsible for managing the funds of North Korean leader Kim Jong Un within North Korea.
The organization is headed by Kim Kwang-myong, an official from the North Korean Reconnaissance General Bureau (Pyongyang's intelligence agency), and also extorts data from users using malware that targets the illicit gambling site.
The South Korean cybercriminals offered extra payments to Gyonghung Information Technology depending on the number of players using Chinese banks or PayPal for deposits on the illicit gambling site, providing additional incentives ranging from $2,000 to $5,000.
Despite North Korea's involvement in cybercrime, law enforcement agencies have largely prevented the transfer of laundered funds to North Korean bank accounts, even after the Lazarus hacker group laundered $50 million through a casino in Manila in 2016.
Read also:
- Leverkusen claims victory in the cup, securing a double triumph.
- Alonso achieves a double victory after consuming a German brew.
- Does the SVolt factory in Saarland face stability issues?
- Furor surrounding Sylt scandal footage