#cryptolinked

Crypto-linked Cross River Bank receives FDIC order

(adsbygoogle = window.adsbygoogle || []).push();

Cross River Bank has received a consent order from the FDIC demanding further oversight, according to a filing made public on April 28.

Bank receives order for lending compliance

The FDIC suggested in that filing that Cross River Bank engaged in “unsafe or unsound banking practices” related to fair lending laws and regulations.

The regulator demanded that the company introduce greater oversight and controls and make corrections through a related agreement.

Cross River Bank will neither admit nor deny wrongdoing, the order said.

In a separate report from the Wall Street Journal, a representative from Cross River Bank said that the action was related to a review of the company’s lending practices from 2021 rather than its cryptocurrency or payments business activities.

The bank was also previously targeted by the FDIC in 2018 when the regulator compelled the company to change certain practices and pay a fine of nearly $642,000.

Cross River Bank serves crypto clients

Cross River Bank is known to serve and work with various cryptocurrency companies including crypto exchange Coinbase and USDC issuer Circle.

The company previously described a “crypto first” strategy to the tech news site TechCrunch in March 2022. There, a partner firm of Andreessen Horowitz suggested that the firm supports “many other leading crypto companies.”

Though the FDIC’s actions are not related to the bank’s crypto business, the incident is notable due to the failures of other crypto-friendly banks such as Silvergate Bank and Silicon Valley Bank, both of which collapsed in March.

Those incidents demonstrate that significant controversy could cause Cross River Bank’s crypto clients to break ties with the bank or lead clients to make higher-than-usual withdrawals — though there is no indication that this is occurring at present.

The post Crypto-linked Cross River Bank receives FDIC order appeared first on CryptoSlate.

(adsbygoogle = window.adsbygoogle || []).push(); #Cryptolinked #Cross #River #Bank #receives #FDIC #order

Three North Koreans Sanctioned for Involvement in Crypto-Linked Hacking Group – Here's What Happened

(adsbygoogle = window.adsbygoogle || []).push();

Source: Alexlmx/Adobe

The US Department of Foreign Asset Control (OFAC) has sanctioned three individuals that allegedly supported North Korea through illicit financing and malicious cyber activity. 

In a Monday press release, the US Treasury claimed that the three individuals provided material support to the Lazarus Group, a North Korean hacking team known for crypto thefts, to convert stolen cryptocurrency to fiat currency.

Mainland China-based virtual currency trader Wu Huihui and Hong Kong-based currency trader Cheng Hung Man were over-the-counter (OTC) traders who facilitated crypto transactions for Lazarus, per the agency. 

A third person, Sim Hyon Sop, was identified as a North Korean banker that provided other financial support.

“Today’s indictments reveal North Korea’s continued use of various means to circumvent U.S. sanctions,” U.S. Attorney for the District of Columbia Matthew Graves said in a statement. 

“We can and will ‘follow the money,’ be it through cryptocurrency or the traditional banking system, to bring appropriate charges against those who would help to fund this corrupt regime.” 

The announcement said that the North Korean government uses the crypto assets obtained by the Lazarus Group to fund its illegal nuclear program. The regime has repeatedly threatened Japan and other neighbors with nuclear weapons.

North Korea has raked in billions of dollars through cryptocurrency thefts and other schemes since at least 2017.

Earlier this year, the White House said that North Korean hackers had stolen more than $1 billion worth of crypto in the past two years, adding that Pyongyang has used the funds to support its missile program.

The US government has also claimed that the North Korean hacking group Lazarus was responsible for the hack of Axie Infinity’s Ronin blockchain that saw hackers make off with about $625 million worth of Ethereum and USDC.

However, North Korea has repeatedly denied that it seeks to hack crypto and has refuted accusations surrounding the Lazarus group, which has previously been accused of masterminding the 2014 hack of Sony Pictures and the 2017 Wannacry ransomware attacks.

North Korean Hackers Exploit DeFi and Crypto Loophloles

North Korean hacking groups, which account for a huge portion of illicit cyber activities, have been continually innovating and finding new ways to steal crypto assets and launder those funds. 

Earlier this month, the US Treasury claimed that North Korean hackers and scammers exploit loopholes in the decentralized finance (DeFi) space to launder money and hide criminal activity.

The federal agency said that North Korean hackers and other groups engaged in illicit activity have benefited from the non-compliance of some DeFi platforms with certain AML and CFT regulations.

Likewise, a recent report by cybersecurity firm Mandiant noted that Pyongyang-based hacking group APT43, also known as Kimuski, buys cloud mining services with its stolen funds to produce clean crypto with no blockchain-based connections for law enforcement to trace.

“APT43 steals and launders enough cryptocurrency to buy operational infrastructure in a manner aligned with North Korea’s juche state ideology of self-reliance,” the report claimed.

  (adsbygoogle = window.adsbygoogle || []).push(); #North #Koreans #Sanctioned #Involvement #CryptoLinked #Hacking #Group #Heres #Happened