Blockchain analytic company, CipherTrace has released a detailed analysis of how two Chinese nationals, linked to North Korea, laundered stolen crypto through several banks and crypto exchanges.

On March 2, two Chinese nationals, Tian Yinyin and Li Jiadong were charged with money laundering conspiracy and operating an unlicensed money transmitting business by the US Department of Justice. It was alleged that the two were involved in laundering stolen crypto from a crypto exchange hack.

According to the CipherTrace report, the two Chinese phishers used a technique known as ‘peel chains’ to hide large crypto deposits. Peel chains are usually used by cybercriminals to circumvent unwanted attention that is associated with a single, large transaction onto an exchange. In addition, the duo also used peel chains to successfully launder funds from two other exchanges hacks believed to be perpetrated by North Korean hackers.

The report further revealed that, the IRS-CI investigation found that the two Chinese men that were arrested by the US officials used fake identities and manipulated photos to pass the KYC procedures at several exchanges.

North Korea has an infamous history of using crypto for illegal activities. The country has been repeatedly accused of using crypto to evade US and UN economic sanctions. President Kim Jong-un’s regime has been accused of using crypto to fund ballistic missile projects.