North Korea's Crypto Laundering Scheme: A Billions-Dollar Headache
North Korea's hacking spree has netted billions in cryptocurrency, but converting this loot into fiat currency presents a massive challenge. Unable to use major exchanges due to KYC regulations, they rely on a global network of over-the-counter brokers, particularly in under-regulated regions like China. The sheer volume of funds, however, creates a significant bottleneck, leaving vast sums of crypto trapped in wallets – a modern-day equivalent of Escobar's cash storage problem. While employing mixers and other tools to obfuscate transactions, North Korea faces persistent pressure from nations like the US, who employ various methods to track and seize these illicit funds. This includes using provisions in the USA PATRIOT Act to subpoena Chinese banks, a strategy requiring significant political capital.