North Korea Uses Tornado Cash To Wash Money Worth IDR 2.2 Trillion From Crypto Curian

JAKARTA - Hackers from North Korea have reportedly used Tornado Cash, a crypto wallet address anonymous platform or commonly called mixer, to launder funds of IDR 2.2 trillion from crypto theft. This information was revealed from a secret report submitted to the UN Security Council.

According to the report, investigators found that North Korea laundered IDR 2.2 trillion through Tornado Cash. Since 2017, cyber attacks from North Korea targeting crypto companies have resulted in a loss of around IDR 54.6 trillion. One of the biggest thefts occurred in March 2024, where funds of IDR 2.2 trillion from the HTX crypto exchange were laundered through Tornado Cash.

Alexey Pertsev, co-founder and developer of Tornado Cash, has been found guilty of money laundering worth IDR 18.3 trillion and sentenced to 64 months in prison in the Netherlands. Meanwhile, two other founders, Roman Storm and Roman Semeno, are still awaiting trial in the United States.

Tornado Cash's Role In Money Laundering

Tornado Cash was initially sanctioned by the United States in 2022 for allegedly helping North Korean hacker group Lazarus Group to launder illegal funds through this mixer. In 2023, the United States sued Roman Storm and Roman Semenov for allegedly facilitating money laundering of more than IDR 15 trillion. Both pleaded innocent and waited for trial in the US.

Reporting from CCN, Chris Wong of the FBI said one of the main mechanisms used by North Korea to convert stolen cryptocurrencies was through over-the-counter (OTC) traders, a peer-to-peer (P2P) method popular in countries with economic problems.

With Alexey Pertsev now jailed in the Netherlands, two other founders await their fate in US courts. The latest findings from the United Nations can bring significant weight in the upcoming trial.

The debate is also centered on whether Tornado Cash founders have controls over the use of the mixing platform or mixer. Some argue that developers cannot be taken responsibility for their abuse of products, just as automakers are not responsible for the illegal use of the vehicles they make.