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FILE PHOTO: North Korean leader Kim Jong Un inspects a flood-affected site in Taechong-ri, Unpha County, North Hwanghae Province, North Korea, in this image released Sept. 11, 2020 by North Korea’s Central News Agency. KCNA via REUTERS
WASHINGTON – A senior US justice official on Thursday accused China of helping North Korea launder money from mass cyber thefts it has carried out to raise funds in the face of international sanctions.
At an event hosted by a Washington think tank, John Demers, the assistant attorney general for national security, also said that North Korea was likely receiving support from China in the form of cyber experience and training.
“The other thing … that really comes out of our cases … is China’s involvement in helping the North Koreans evade sanctions … in helping them launder money that they have somehow obtained or that they want to bring into the regime. , or that I have stolen and otherwise, helping them move merchandise, ”Demers said.
“There is support through the Chinese cyber infrastructure, there is likely to be support in terms of exchange of experience and training from the Chinese side,” he added at the event organized by the Center for Strategic and International Studies.
Demers said those involved in violating China-backed international sanctions imposed on North Korea for its nuclear and missile programs included unscrupulous private individuals and companies.
“But probably the biggest problem will be countries like China that … don’t want North Korea to fail,” he said.
Demers added that China was doing a “balancing act” as it wasn’t “exactly excited about an overly aggressive North Korea” either, an apparent reference to Beijing’s declared opposition to North Korea’s missile and nuclear weapons programs. .
In March, the US Department of Justice accused two Chinese nationals of laundering more than $ 100 million in cryptocurrency on behalf of North Korea and detailed Pyongyang’s use of hackers to circumvent sanctions.
Demers appeared to go further by suggesting the Chinese state’s involvement, an accusation that comes at a time when the Trump administration has stepped up attacks on China in the run-up to the November 3 US presidential election.
When asked to comment, a spokesman for the Chinese embassy in Washington said that China had always been implementing US resolutions on North Korea, adding: “I am not aware of the situation you mentioned.”
“The Chinese government is a strong advocate of cyber security and strongly opposes and fights against all forms of cyber attacks and crimes in accordance with the law.”
UN experts monitoring the sanctions implementation said last year that North Korea generated an estimated $ 2 billion for its weapons programs using “widespread and increasingly sophisticated” cyberattacks to rob banks and companies. cryptocurrency exchanges.
Experts said that this year North Korea continued to carry out such attacks globally and that they were investigating how Pyongyang laundered virtual assets.
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