{"id":323722,"date":"2023-05-09T17:20:34","date_gmt":"2023-05-09T16:20:34","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=323722"},"modified":"2023-07-13T03:25:32","modified_gmt":"2023-07-13T02:25:32","slug":"kim-jong-un-gets-approved-for-gate-io-crypto-account","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/kim-jong-un-gets-approved-for-gate-io-crypto-account\/","title":{"rendered":"\u2018Kim Jong-Un\u2019 gets approved for Gate.io crypto account"},"content":{"rendered":"<p>An account application under the name Kim Jong-Un cleared Gate.io's Know Your Customer (KYC) checks and was approved within minutes.<\/p>\n<h2>Gate.io KYC process draws scrutiny<\/h2>\n<p>On-chain sleuth, <a href=\"https:\/\/twitter.com\/zachxbt\/status\/1655929037770899457\">ZachXBT<\/a>, sought to test the hypothesis that crypto exchange accounts provide a degree of security when tracking down stolen funds.<\/p>\n<blockquote><p>&#8220;<span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">When stolen funds go to a crypto exchange people like to assume that there is a real person with a real identity tied to an account<\/span>&#8220;<\/p><\/blockquote>\n<p>To debunk this, he applied for a Gate.io account with the name Kim Jong-Un and an email address\u00a0 &#8220;not<span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">lazarus.<\/span>&#8221; ZachXBT screenshotted the application approval showing he had passed KYC and was cleared to trade cryptocurrencies on the exchange.<\/p>\n<p>Furthermore, the company's &#8220;KYC-1&#8221; basic verification tier enabled the account holder to withdraw up to 100,000 USDT daily.<\/p>\n<p>It's unclear whether ZachXBT had altered ID documentation to get to this point. Nonetheless, the outcome highlighted flaws in Gate.io's application process &#8211; particularly with regard to name checks.<\/p>\n<p>To hammer home the point, ZachXBT repeated this process using made-up names and names listed on the Office of Foreign Assets Control (OFAC) sanctions list with email addresses such as &#8220;<span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">harmonyhacker<\/span>&#8221; and &#8220;<span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">lazaruslover&#8221; &#8211; all of which were approved &#8211; thus contradicting the idea that bad actors shy away from using exchanges.<br \/>\n<\/span><\/p>\n<p>The <a href=\"https:\/\/phys.org\/news\/2017-06-north-korea-cyberattacks-lazarus.html\">Lazarus Group<\/a> refers to a collective of hackers and scammers, reportedly under the direction of the North Korean government.<\/p>\n<p>The group employs many strategies, including malware, as used in the 2017 <a href=\"https:\/\/english.elpais.com\/international\/2022-05-26\/lazarus-the-cybercriminals-who-steal-and-extort-for-north-koreas-beloved-leader.html\">WannaCry<\/a> ransomware attack. And social engineering, such as baiting a senior <a href=\"https:\/\/cryptoslate.com\/axie-infinity-co-founder-attempts-to-entice-players-back-by-saying-nature-is-healing\/\">Axie Infinity<\/a> engineer to open a &#8220;job offer&#8221; file, subsequently infecting the engineer's computer and leading to several Axie nodes being seized.<\/p>\n<h2>Know Your Customer<\/h2>\n<p>To meet Financial Action Task Force (FATF) compliance, crypto exchanges have been incorporating mandatory KYC requirements &#8211; with <a href=\"https:\/\/www.bybit.com\/en-US\/help-center\/s\/article\/Individual-KYC-FAQ\">ByBit<\/a> becoming the latest to fall in line. The company announced that all users will need to upload ID starting from May 8.<\/p>\n<p>KYC critics argue that the practice limits crypto participation. Moreover, bad actors have the means and know-how to easily bypass checks &#8211; making KYC pointless in terms of achieving its goal of stopping money laundering.<\/p>\n<p>Also, as demonstrated in the Ledger data breach in <a href=\"https:\/\/www.bitdefender.co.uk\/blog\/hotforsecurity\/threat-actors-target-ledger-data-breach-victims-in-new-extortion-campaign\/\">July 2020<\/a>, storing customer information provides hackers with an additional avenue of attack. Ledger customers were threatened and doxxed after their contact information was made public.<\/p>\n<p>CryptoSlate reached out to Gate.io for comment on ZachXBT's findings. No comment was received at the time of press.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>An account application under the name Kim Jong-Un cleared Gate.io&#8217;s Know Your Customer (KYC) checks and was approved within minutes. Gate.io KYC process draws scrutiny On-chain sleuth, ZachXBT, sought to test the hypothesis that crypto exchange accounts provide a degree of security when tracking down stolen funds. &#8220;When stolen funds go to a crypto exchange [&hellip;]<\/p>\n","protected":false},"author":460,"featured_media":323759,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39,77968,60209],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>\u2018Kim Jong-Un\u2019 gets approved for Gate.io crypto account<\/title>\n<meta name=\"description\" content=\"Gate.io&#039;s account verification has come under scrutiny after ZachXBT tested its KYC process.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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