There are allegations that North Korean IT workers are using USDC to evade sanctions, raising concerns about the compliance of the stablecoin.
Allegations Against USDC
Analyst ZachXBT claims that USDC is the primary payment tool for North Korean IT workers. These allegations are supported by research from Ethereum expert Tayvano, who has identified high-frequency transactions using USDC.
Wallet Movement Data
Analysis of wallets shows active USDC flows through platforms like Raydium and Allbridge, followed by deposits at centralized exchanges. These transactions resemble known laundering schemes associated with North Korean hacking incidents.
Impact of DOJ Actions
In June, the U.S. Department of Justice seized $7.7 million in cryptocurrency linked to fraud by North Korean IT workers. Although these actions are not directly tied to the wallets flagged by Tayvano, they confirm law enforcement's active role in this area.
The allegations of North Korean IT workers using USDC highlight the need for stricter controls and monitoring in the cryptocurrency space, especially as stablecoins gain prominence in financial markets.
