2024-07-15 10:33

Transfers to Huione Pay after three hacks totalled $150,000 FBI attributed hacks to Lazarus group Transfers give insight into how Lazarus turns crypto into cash Cousin of prime minister is major Huione Pay shareholder LONDON, July 15 (Reuters) - A major Cambodian payments firm received crypto worth over $150,000 from a digital wallet used by North Korean hacking outfit Lazarus, blockchain data shows, a glimpse of how the criminal collective has laundered funds in Southeast Asia. Huione Pay, which is based in Phnom Penh and offers currency exchange, payments and remittance services, received the crypto between June 2023 and February this year, according to the previously unreported blockchain data reviewed by Reuters. The crypto was sent to Huione Pay from an anonymous digital wallet that, according to two blockchain analysts, was used by Lazarus hackers to deposit funds stolen from three crypto companies in June and July last year, mostly via phishing attacks. The FBI said in August 2023 New Tab, opens new tab that Lazarus plundered about $160 million from the crypto firms: Estonia-based Atomic Wallet and CoinsPaid; and Alphapo, registered in Saint Vincent and the Grenadines. The agency didn't disclose specifics. They were the latest in a series of heists by Lazarus that the United States has said is funding Pyongyang's weapons programmes. Cryptocurrency allows North Korea to circumvent international sanctions, the United Nations has said. That may in turn help it to pay for banned goods and services, according to the Royal United Services Institute, a London-based defence and security think tank. Huione Pay's board said in a statement the company had not known it "received funds indirectly" from the hacks and cited the multiple transactions between its wallet and the source of the hack as the reason it was unaware. The wallet that sent the funds was not under its management, Huione said. Third parties cannot control transactions to and from wallets that aren't under their management. However, blockchain analysis tools enable companies to identify high-risk wallets, and to seek to prevent interaction with them, crypto security experts say. Huione Pay - whose three directors include Hun To, a cousin of Prime Minister Hun Manet - declined to specify why it had received funds from the wallet or to provide details of its compliance policies. The company said Hun To's directorship does not include day-to-day oversight of its operations. Reuters was unable to reach Hun for comment. The news agency has no evidence that Hun To or Cambodia's ruling family had any knowledge of the crypto transactions. The National Bank of Cambodia (NBC) said in a statement to Reuters that payments firms such as Huione weren't allowed to deal or trade any cryptocurrencies and digital assets. In 2018, it said the ban sought to avoid investment losses due to crypto's volatility, cybercrime and the anonymity of the technology "which may cause risks of money laundering and financing of terrorism." The NBC told Reuters it "would not hesitate to impose any corrective measures" against Huione, without saying if such action was planned. The North Korean mission to the United Nations in New York did not respond to a request for comment. A person at its mission to the United Nations in Geneva told Reuters in January that previous reporting on Lazarus was "all speculation and misinformation." Atomic Wallet and Alphapo didn't respond to requests for comment. CoinsPaid told Reuters that its own data showed crypto stolen from it worth $3,700 reached the Huione Pay wallet. While cryptocurrency is anonymous and flows outside the conventional banking system, its movements are traceable on the blockchain - a public, immutable ledger that records the amount of crypto sent from wallet to wallet, and when the transactions occurred. U.S. blockchain analysis firm TRM Labs told Reuters in a statement that Huione Pay was one of a number of payment platforms and over-the-counter (OTC) brokers that received a majority of the crypto stolen in the Atomic Wallet hack. Brokers connect buyers and sellers of crypto, offering traders a greater degree of privacy than crypto exchanges. In its statement, TRM also said that the hackers, to hide their tracks, had converted the stolen crypto via a complex laundering operation into different cryptocurrencies, including tether (USDT) - a so-called ‘stablecoin’ that retains a steady value in dollars. For tether transactions, they used the Tron blockchain, a fast-growing register that is popular for its speed and low cost, TRM added. “This majority of funds were converted to USDT on the Tron blockchain, and appeared to be sent to exchanges, services, and OTC - one of which, was Huione Pay," TRM Labs told Reuters, referring to the actions of the hackers. It did not provide further details. A spokesperson for the British Virgin Islands-registered Tron said: "Tron condemns the abuse of blockchain technologies and is dedicated to combating these, and other malicious actors, in all forms, and wherever they may be found." The spokesperson did not comment directly on the Atomic Wallet hack. Estonia's investigation into the 2023 hacks of Atomic Wallet and Coinspaid remains open, said Ago Ambur, the head of Estonia's cybercrime bureau. Cybercrime police in Saint Vincent and the Grenadines did not respond to requests for comment on the Alphapo hack. RED FLAG U.S. blockchain analysis firm Merkle Science, which counts as clients law enforcement agencies in the United States and Britain and has previously examined Lazarus heists, examined the movement of coin from the 2023 hacks for Reuters. Its CEO, Mriganka Pattnaik, said tracing funds from the Lazarus attacks was difficult due to the complex methods used to conceal the money trail. Merkle Science said its investigation showed that there were three "hops" – or transfers – from the Atomic Wallet hackers to the anonymous wallet that later transferred funds to Huione. Transfers between multiple crypto wallets are typically a red flag for organisations seeking to launder funds, financial crime experts and blockchain analysts say. Between June and September 2023, the Lazarus hacker who targeted Atomic Wallet sent tether worth around $87,000 to the anonymous wallet, according to the data uncovered by Merkle Science. The wallet also received tether worth around $15,000 stolen from CoinsPaid and Alphapo, Merkle Science said. In January, the United Nations said Lazarus had shared money-laundering networks with criminals in Southeast Asia, without naming any platforms involved. Jeremy Douglas, the UN Office of Drugs and Crime's former regional director for Southeast Asia, said the region was awash with unregulated crypto service providers and online casinos acting as "underground banks." He did not comment on Huione. Groups such as Lazarus strive to stay ahead of law enforcement, he added, with technology and infrastructure that has spread across Southeast Asia now a critical part of their ability to do so. "Southeast Asia has in many ways become the global ground zero, the primary testing ground, for high-tech money laundering and cybercrime operations," he said. The G7's illicit finance body, the Financial Action Task Force (FATF), last year removed Cambodia from its "grey list" of countries with flawed anti-money laundering policies, citing improvements to its regime. However, a FATF spokesperson referred Reuters to a 2021 report that highlighted "major gaps" in Cambodia's illicit finance rules for crypto firms, adding that the assessment still stood. Cambodia’s central bank said it was drafting regulations to identify and punish use of crypto for illegal activities including fraud, money laundering and cybersecurity threats. Sign up here. https://www.reuters.com/technology/cybersecurity/north-korean-hackers-sent-stolen-crypto-wallet-used-by-asian-payment-firm-2024-07-15/

2024-07-15 10:16

BEIJING, July 15 (Reuters) - China has requested the World Trade Organization set up an expert panel to help settle a dispute over electric vehicles subsidies under the U.S. Inflation Reduction Act, the country's commerce ministry said on Monday. The world's No.2 economy opened the WTO dispute in late March after the Biden administration passed the IRA, a wide-ranging law that provides billions of dollars in tax credits to help consumers buy EVs and firms to produce renewable energy, as the White House looks to decarbonise the U.S. power sector. China has failed to reach a solution with the U.S. through consultations that would safeguard the rights and interests of its EV industry, the ministry said in its statement, and so is advancing its case at the WTO. The IRA "excludes products from WTO members such as China, artificially sets trade barriers, and pushes up the costs of green energy transition", China's commerce ministry said. "We urge the U.S. to abide by WTO rules and stop abusing its industrial policies to undermine international cooperation on climate change," China said. Sign up here. https://www.reuters.com/business/autos-transportation/china-asks-wto-establish-expert-panel-us-electric-vehicle-subsidies-dispute-2024-07-15/

2024-07-15 10:14

MUMBAI, July 15 (Reuters) - The Indian rupee ended lower on Monday, pressured by a decline in the Chinese yuan and tracking losses in Asian peers amid rising odds of Donald Trump's re-election as U.S. president. The rupee closed at 83.5925 against the U.S. dollar, lower than its close at 83.5350 in the previous session. The dollar index was down 0.2% at 104 while the Korean won fell 0.5%, leading losses among major Asian currencies. The Chinese yuan weakened after data showed that the world's second largest economy grew at its worst pace in five quarters. A weaker yuan alongside "routine importer (dollar) demand" pressured the rupee, a foreign exchange trader at a large private bank said. But dollar sales from foreign and state-run banks, towards the end of the session, capped losses, the trader said. An assassination attempt on former U.S. President Donald Trump on Saturday is seen as boosting his chances of victory in the presidential polls. Investors have previously reacted to the prospect of a Trump win by pushing long-dated Treasury yields higher and the dollar higher. The 10-year U.S. Treasury yield was last quoted up slightly at 4.20%. However, heightened expectations of rate cuts by the Federal Reserve may keep a lid on gains on the dollar. Recent economic data have boosted the odds of a September rate cut to above 95%, according to CME's FedWatch tool. "We expect the rupee to underperform amid overall dollar weakness as RBI (Reserve Bank of India) may look to correct rupee overvaluation," FX advisory firm IFA Global said in a note. Meanwhile, India's trade deficit narrowed to $20.98 billion in June from $23.78 billion in May, government data showed. Investors now await remarks from Fed Chair Powell later in the day that may offer cues on the future path of U.S. rates. Sign up here. https://www.reuters.com/markets/currencies/rupee-ends-lower-pressured-by-weaker-yuan-fed-powells-remarks-focus-2024-07-15/

2024-07-15 10:13

MUMBAI, July 15 (Reuters) - The Indian rupee was nearly flat on Monday, even though most of its Asian peers declined tracking weakness in the Chinese yuan and amid heightened odds of a second presidential term for Donald Trump. The rupee was at 83.5425 against the U.S. dollar as of 10:10 a.m. IST, barely changed from its close at 83.5350 in the previous session. The currency shuffled between 83.54 and 83.5475 in early trade. The rupee is expected to be in a narrow range on Monday amid risk aversion in broader markets while the Reserve Bank of India continues to protect against sharp weakness in the currency, Anil Bhansali, head of treasury at Finrex Treasury Advisors said. Most Asian currencies weakened with the Korean won down 0.5% and leading losses. The Chinese yuan weakened 0.1% following weaker-than-expected second-quarter GDP data. The dollar index was little changed at 104.2. Expectations of Trump reclaiming the top job in the world's largest economy rose following an assassination attempt on him on Saturday. Even before the attack, investors had positioned for a second Trump term by pushing up the dollar and longer tenor U.S. bond yields. Such trades may see heightened interest following the shooting. However, the rupee might not see much of a spillover from immediate political developments in the U.S., traders said. Importers and state-run banks have been "consistently buying (dollars) below 83.50 while the upside (on USD/INR) remains well-capped near 83.60-65," a trader at a foreign bank said. Meanwhile, India's foreign exchange reserves rose $5.2 billion to a record high $657.16 billion as of July 5, data from the central bank showed on Friday. Investors await remarks from Fed Chair Jerome Powell later in the day for cues on the future path of U.S. policy rates. Sign up here. https://www.reuters.com/markets/currencies/rupee-ducks-weakness-asian-peers-lingers-tight-band-2024-07-15/

2024-07-15 10:10

PARIS, July 15 (Reuters) - Many companies are reluctant to invest in critical minerals and energy transition projects due to uncertainty about consumer demand for EVs and government commitment to zero-carbon goals, industry players said. The long-term picture is intact of a world needing large quantities of materials such as lithium, cobalt and copper to enable the world to give up using fossil fuels. The timing of the next several years, however, is in question, they said at the World Materials Forum in Paris last week. Both the European Union and 12 U.S. states aim to ban new petrol car sales by 2035, but there has been a push-back about those targets. "I think there is a lot of doubt right now that this will happen," Mathias Miedreich, former CEO of Belgium recycling and battery materials group Umicore, told the conference. "That makes it very difficult to invest." In May Miedreich stepped down from Umicore (UMI.BR) New Tab, opens new tab, which lowered its 2024 profit forecast the following month due to weak demand projections for battery materials due to a slowing EV market. Sales of new battery-electric cars in the EU dropped 12% in May from a year earlier. "Financing was not a big issue a few years ago," said Stephane Michel, president of TotalEnergies (TTEF.PA) New Tab, opens new tab Gas, Renewables & Power unit. "You can still find capital now, but you have to have the right project." TotalEnergies is part of the ACC EV battery joint venture including automakers Stellantis (STLAM.MI) New Tab, opens new tab and Mercedes (MBGn.DE) New Tab, opens new tab, which last month paused plans for German and Italian plants. An executive with a major European chemicals group that supplies battery materials said many companies are assuming that there will be a delay of about two years in the energy transition with 2030 projections now being moved back to 2032. "That's the view now, but it could change and be more serious, it's hard to say," the executive told Reuters, declining to be named because he was not authorised to speak to the media. An executive of a global company involved in EV battery materials said demand for critical materials in China and Asia was holding up better than in the Europe and the United States. "The question is where do we put our next capacity. You have to be very agile, the market is moving very fast," he said. Sign up here. https://www.reuters.com/markets/commodities/investment-critical-minerals-web-doubt-industry-says-2024-07-15/

2024-07-15 10:02

July 15 (Reuters) - A look at the day ahead in U.S. and global markets from Mike Dolan The shock shooting on Saturday of former President Donald Trump, who is seeking a return to the White House, is reverberating around world markets, with bets that the incident boosts his re-election chances steepening the Treasury yield curve and lifting stock futures first thing. The full implications of the gun attack on Trump, who escaped with a minor injury to his ear to head to the Republican convention in Milwaukee on Monday, may take some time for the country and investors to absorb. But for now the simple conclusion is that the shooting likely increases Trump's already considerable chances of returning to the White House after November's election. For most analysts trying to parse that for markets, that ups the chances of tax cut extensions and higher trade tariffs - leading to even higher U.S. fiscal deficits, even alongside potential growth headwinds and intense political pressure on the Federal Reserve to ease as inflation continues to subside near term. Some also suspect a possible withdrawal of U.S. support for Ukraine would also up fiscal pressures in Europe, who may then have to pick up the entire financial bill left by an American retreat. With U.S. equities expected to benefit initially from tariffs, tax cuts and a possible spur to re-shoring of manufacturing, already record high stocks tend to be called higher on the increased prospect of a Trump win too. So first thing Monday - with betting markets now putting chances of a Trump election win close to 70% - U.S. stock futures were higher and the 2-to-30-year Treasury yield curve briefly turned positive for the first time since January. The two-year-old yield curve inversion from two to 10 years, meantime, also squeezed to narrowest since January at just 23 basis points. Fed chair Jerome Powell speaks in Washington later. With short-term yields still falling in the slipstream of last week's surprising disinflation news, and futures now fully priced for a first Fed rate cut in September, but long-term yields edging higher regardless, the curve was clearly riffing off the Trump incident. Bitcoin's jump back above $60,000 for the first time in a couple of weeks was seen as another related reaction. And most obvious of all perhaps, Trump Media & Technology Group (DJT.O) New Tab, opens new tab - majority owned by Trump - surged 63% to $50.3. The dollar fallout more broadly is harder to figure - not least with Japanese markets closed for a holiday on Monday and following Thursday's latest round of yen-buying intervention by the Bank of Japan. On balance, the dollar index (.DXY) New Tab, opens new tab and dollar/yen were stuck fast - with early dollar gains against Mexico's peso and China's yuan pared back a bit ahead of the open as full-year Fed easing speculation rose as high as 63 bps. The euro and sterling held last week's gains, the latter at its best levels in a year against the dollar and in two years against the euro . Currency market volatility subsided, meantime, and three-month implied vol for the pivotal euro/dollar exchange rate fell to its lowest since late 2021. China's markets had a mixed reaction to another surprisingly poor set of economic readings there - second-quarter GDP growth fell to as low as 4.7%, far below the 5% that was both forecast by economists and also targeted by Beijing. Although there was a slight beat in June industrial numbers, retail sales also missed expectations for the month. Perhaps most alarming of all is the ongoing house price bust, with new home prices falling for the 11th straight month in May and the 3.9% annual decline being the steepest in nine years. Property investment fell 10.1% in the first half of 2024 from a year earlier, meantime, and home sales by floor area declined 19%. Hong Kong stocks (.HSI) New Tab, opens new tab did lunge 1.5% lower and the yuan weakened slightly on interest rate cut speculation, but mainland China stocks (.CSI300) New Tab, opens new tab eked out a small gain on hopes of more substantial government support. China's ruling Communist Party starts its 'third plenum' this week. Reforms top the agenda and, amid a packed priority list, may include the most significant overhaul of the fiscal system in three decades to try to redirect income from Beijing to cash-strapped regional governments. Back on Wall Street, the earnings season unfolds with Goldman Sachs (GS.N) New Tab, opens new tab and BlackRock next up after an underwhelming start from other big banks on Friday. And Google parent Alphabet (GOOGL.O) New Tab, opens new tab is in advanced talks to acquire cybersecurity startup Wiz for roughly $23 billion, in a deal that would represent the technology giant's biggest acquisition ever. Key developments that should provide more direction to U.S. markets later on Monday: * New York Fed's June manufacturing survey * US corporate earnings: Goldman Sachs, BlackRock * Federal Reserve chair Jerome Powell speaks in Washington, San Francisco Fed President Mary Daly speaks; European Central Bank President Christine Lagarde speaks * Euro group of euro zone finance ministers meet in Brussels * U.S. Republican party convention starts * US Treasury auctions 3-, 6-month bills Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-2024-07-15/