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North Korean Cybercrime, Crypto-Hacking and Money Laundering
Case Study and Insights from Law Enforcement
Friday, 8/7, 10:00 – 11:30 AM ET
Session 12
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A Step Ahead of Financial Crime and the Competition
This is the best training out there right now. You guys are making an
effort to keep it that way.
Senior Director Compliance;Financial Services
“”
ACFCS membership equips individuals and organizations with first-class practical tools, information and education that improve results in financial crime detection and prevention.
10% Off With Code Fincrime10
![Page 3: Session 12 · North Korean Cybercrime, Crypto-Hacking and Money Laundering Case Study and Insights from Law Enforcement Friday, 8/7, 10:00 –11:30 AM ET Session 12](https://reader034.vdocument.in/reader034/viewer/2022051917/6009c06c49f2141e1407cacc/html5/thumbnails/3.jpg)
Join the Next Generation of Financial Crime Fighters with CFCS Certification
10% Off With Code Fincrime10
![Page 4: Session 12 · North Korean Cybercrime, Crypto-Hacking and Money Laundering Case Study and Insights from Law Enforcement Friday, 8/7, 10:00 –11:30 AM ET Session 12](https://reader034.vdocument.in/reader034/viewer/2022051917/6009c06c49f2141e1407cacc/html5/thumbnails/4.jpg)
4
• Complete fun and exciting missions to earn points
• Multiple winners announced every day…grand prizes on Friday
• Checkout the game tracker to see who’s in the lead and photos of completed missions
• Download GooseChase appGame Code: ACFCS
Scavenger Hunt – Let’s Go on a Goose Chase
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Exhibit Booths – Take a Virtual Walk
5
• Visit the exhibitors and enter the booths by clicking on their name (not logo)
• Gain access to 50+ free downloadable resources
• Learn about their solutions by attending a Product Demo session (on agenda)
![Page 6: Session 12 · North Korean Cybercrime, Crypto-Hacking and Money Laundering Case Study and Insights from Law Enforcement Friday, 8/7, 10:00 –11:30 AM ET Session 12](https://reader034.vdocument.in/reader034/viewer/2022051917/6009c06c49f2141e1407cacc/html5/thumbnails/6.jpg)
More Resources – Yes, I Want More!
6
• Exclusive takeaway tools including presentations, recordings and more resources
• Go to your profile in Grip and scroll down to the ‘Exclusive Access’ field
• Click YES to gain access to the toolkit and receive sponsor communications
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Go Social – Make Meaningful Connections
Chat privately and schedule video meetings on Grip
View your recommendations
Continue the conversation on social media
#fincrimevirtualweek
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Boring but Important Things – Event Logistics
8
• Daily reminder emails to let you know what’s on tap
• Most sessions being recorded, available until August 14
• Certificates of participation • Attend 80% of the session• Fill out the survey – Triggers at end, available
throughout
![Page 9: Session 12 · North Korean Cybercrime, Crypto-Hacking and Money Laundering Case Study and Insights from Law Enforcement Friday, 8/7, 10:00 –11:30 AM ET Session 12](https://reader034.vdocument.in/reader034/viewer/2022051917/6009c06c49f2141e1407cacc/html5/thumbnails/9.jpg)
Boring but Important Things – Troubleshooting
9
Audio/visual/other issues: • Try REFRESHING BROWSER as first step• If issues persist, close out and rejoin• Chrome and Firefox recommended
For customer support: • [email protected]• 786-591-1346
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Meet the Experts
10
Zia Faruqui
Assistant U.S. Attorney
U.S. Attorney’s Office for the District of Columbia
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Meet the Experts
11
Chris Janczewski
Special Agent, Cyber Crimes Unit
IRS-CI
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12
Where have Zia and Chris not been to:
A. Seychelles
B. West Bank, Palestinian Territory
C. North Korea
D. Vatican
Poll Question
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Who are we and why are we here?
Zia Faruqui
Assistant United States Attorney
Threat Finance Unit
14
Chris Janczewski
Special Agent
IRS-CI’s Cyber Crimes Unit
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Washington, D.C. USAO
Threat Finance Unit
Notable cases:
North Korean Sanctions
Tanker seizures
Antiquities
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IRS – Criminal Investigation
D.C. Cyber Crimes Unit
Notable cases:
Welcome to Video
Dark Scandals
AlphaBay
Helix
Twitter hack
BTC-e
Two federal agents that stole from Silk Road
Buyersclub
Eastern Metals Securities
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Is it a good idea to let your colleagues edit a Power Point Presentation without your review?
A. Yes
B. No
Poll Question
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sIRS – Criminal Investigation
D.C. Cyber Crimes Unit
Notable cases:
Welcome to Video
Chris is FAMOUS.
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IRS – Criminal Investigation
D.C. Cyber Crimes Unit
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Do you know what Bitcoin is?
A. Yes
B. No
Poll Question
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•Bitcoin is, at its essence, a
computer program.
•The program is open-
source, meaning that the
code is available for anyone
to review.
• Any user anywhere in the
world can access the Bitcoin
“protocol.”
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Ways to Obtain Bitcoin
22
Sell Goods/Services for Bitcoins
Accept bitcoins as payment for goods or services through
the normal course of business.
2
Business
Mine Bitcoins
As noted earlier, miners are rewarded for solving the
complex equations that verify transactions. When a miner
successfully confirms transactions, he or she is rewarded
with bitcoins.
3Mining
Use Bitcoin Exchanges
Exchanges allow users to convert fiat currencies to
bitcoins. Some examples include: Coinbase, Bitstamp,
and itBit. LocalBitcoins provides users with the ability to
exchange currencies in person.
1
Exchange $
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Do you now or have you ever owned Bitcoin?
A. Yes
B. No
C. No comment. I don’t want to be the subject of your next PowerPoint.
Poll Question
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Bitcoin Blockchain
24
RECIPIENT
(Public Key
ONLY)
SENDER
(Private and
Public Keys)
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Ways to Store your Bitcoin
25
Paper Wallets
QR Codes There’s an app for that…
Hardware Wallets
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Transaction Hash
Signatur
e
Wallet
Input Bitcoin address Input Private
Key
Bitcoin Amount
Date/Timestamp
Output Bitcoin address
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Peel Chain
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28
What is your favorite cryptocurrency:
A. Coinye
B. Potcoin
C. [Venezuelan] Petro
D. Loonie
Poll Question
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30
If a potential customer with high net worth is concerned about your bank’s security and sends you a questionnaire, how should you respond?
A. Fil l it out truthfully.
B. Fil l it out, but avoid discussing problem areas.
C. Don’t respond and lose the client.
Poll Question
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34
Exchanges
Did they collect KYC?
U.S. v. Harmon defined
BTC as money and
applied BSA. 19-cr-395.
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Victim Collection
Low cost
Free email
VOIP for audio
Mass emailer
Translation
Email footer
38
Phishing campaign
Celas LLC
Developer
Prospective Client
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November 2017
17% of total assets
41
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Exchange 3
November 27, 2019
342,000 ETH
($48.5 mil)
42
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DOJ and Treasury Take Concurrent Action
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Conclusion and Questions
45
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Questions?
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THANK YOU!
Last session!Open Secrets
12:00 PM ET