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US Department of Justice reveals Hushpuppi laundered funds for North Korea hackers
By Modupe Shodeinde
The United States Department of Justice has revealed that Ramon Olorunwa Abbas popularly called Hushpuppi, was working with North Korean hackers to launder funds stolen from a Maltese bank.
In a statement released by the department of Justice, it stated that Ramon took part in a “North Korean-perpetrated cyber-enabled robbery from a Maltese bank in February 2019.” It disclosed that he collaborated with a North Korean money launderer, Ghaleb Alaumary, 37, based in Mississauga, Ontario, Canada.
“Alaumary agreed to plead guilty to the charge, which was filed in the U.S. District Court in Los Angeles on Nov. 17, 2020.
“Alaumary was a prolific money launderer for hackers engaged in ATM cash-out schemes, cyber-enabled bank heists, business email compromise (BEC) schemes, and other online fraud schemes.
Alaumary is also being prosecuted for his involvement in a separate BEC scheme by the U.S. Attorney’s Office for the Southern District of Georgia.
“With respect to the North Korean co-conspirators’ activities, Alaumary organized teams of co-conspirators in the United States and Canada to launder millions of dollars obtained through ATM cash-out operations, including from BankIslami and a bank in India in 2018.
“Alaumary also conspired with Ramon Olorunwa Abbas, aka “Ray Hushpuppi,” and others to launder funds from a North Korean-perpetrated cyber-enabled heist from a Maltese bank in February 2019” the statement read.
Abbas was arrested in Dubai and arrived in the U.S. on July 3 to face criminal charges over allegations that he made “hundreds of millions of dollars” from business email compromise frauds and other scams. His criminal trial was due to be heard in late 2020, before the pandemic forced a delay.
The full statement released by the US Justice Department reads:
“A federal indictment unsealed today charges three North Korean computer programmers with participating in a wide-ranging criminal conspiracy to conduct a series of destructive cyberattacks, to steal and extort more than $1.3 billion of money and cryptocurrency from financial institutions and companies, to create and deploy multiple malicious cryptocurrency applications, and to develop and fraudulently market a blockchain platform.
“A second case unsealed today revealed that a Canadian-American citizen has agreed to plead guilty in a money laundering scheme and admitted to being a high-level money launderer for multiple criminal schemes, including ATM “cash-out” operations and a cyber-enabled bank heist orchestrated by North Korean hackers.
“As laid out in today’s indictment, North Korea’s operatives, using keyboards rather than guns, stealing digital wallets of cryptocurrency instead of sacks of cash, are the world’s leading bank robbers,” said Assistant Attorney General John C. Demers of the Justice Department’s National Security Division.
“The Department will continue to confront malicious nation state cyber activity with our unique tools and work with our fellow agencies and the family of norms abiding nations to do the same.”
“Today’s unsealed indictment expands upon the FBI’s 2018 charges for the unprecedented cyberattacks conducted by the North Korean regime,” said the FBI Deputy Director Paul Abbate.
“The ongoing targeting, compromise, and cyber-enabled theft by North Korea from global victims was met with the outstanding, persistent investigative efforts of the FBI in close collaboration with U.S. and foreign partners. By arresting facilitators, seizing funds, and charging those responsible for the hacking conspiracy, the FBI continues to impose consequences and hold North Korea accountable for its/their criminal cyber activity.”
“The scope of the criminal conduct by the North Korean hackers was extensive and long-running, and the range of crimes they have committed is staggering,” said Acting U.S. Attorney Tracy L. Wilkison for the Central District of California.
“The conduct detailed in the indictment are the acts of a criminal nation-state that has stopped at nothing to extract revenge and obtain money to prop up its regime.”
“This case is a particularly striking example of the growing alliance between officials within some national governments and highly sophisticated cyber-criminals,” said U.S. Secret Service Assistant Director Michael R. D’Ambrosio.
“The individuals indicted today committed a truly unprecedented range of financial and cyber-crimes: from ransomware attacks and phishing campaigns, to digital bank heists and sophisticated money laundering operations. With victims strewn across the globe, this case shows yet again that the challenge of cybercrime is, and will continue to be, a struggle that can only be won through partnerships, perseverance, and a relentless focus on holding criminals accountable.”
