North Korea 'Increasingly' Uses Crypto to Avoid US Sanctions, Experts Claim

North Korea is "Increasingly" using cryptocurrencies to evade sanctions imposed by the U.S., according to two Washington-based experts cited by news site Asia Times on September 24.Lourdes Miranda and Ross Delston sent a joint response to an Asia Times' inquiry regarding the use of crypto by the government of North Korea.

Miranda and Delston further explain the scheme that they allege is in use by North Korean authorities.

Initially, the government hires people who have convenient personal identifiable information to open a crypto wallet that can be used to trade cryptocurrencies.

Then local miners transfer crypto into "Multiple" European wallets, where they are mixed and shifted in order to confuse anti-money laundering and know-your-customer systems.

The process ends with North Korean nominees buying bitcoins, which are later converted into other popular cryptocurrencies, such as Ethereum or Litecoin, to break the "Linear pattern of transactions."

As the crypto asset's point of origin is concealed, the North Korean government then has a chance to exchange "Laundered" coins to fiat, thus receiving dollars without any sanctions attached, the experts concluded.

As Cointelegraph reported in August, an earlier report by a South Korean bank revealed that North Korea had attempted to mine Bitcoin between May and July 2017.

The report also contained data on attempts to create a North Korean crypto exchange.

Countries pressed by U.S. economic sanctions are often reported as experimenting with crypto.

Venezuela launched its controversial "Oil-backed" Petro coin, which some experts claim barely exists.