N Korea uses Stolen Cryptocurrency to Fund its Missile Program

Sanctions kinda work and kinda don’t work…seems in the case of North Korea..they have failed.

In 2017, North Korea tested several missiles demonstrating what seemed to be rapid advances in its military technology.

The Hwasong-12 was thought to be able to reach as far as 4,500km (2,800 miles), putting US military bases on the Pacific island of Guam well within striking distance.  source

The Academy of National Defense Science conducts long-range cruise missile tests in North Korea, as pictured in this combination of undated photos supplied by North Korea's Korean Central News Agency (KCNA) on 13 September 2021

Later, the Hwasong-14 demonstrated even greater potential, with a range of 8,000km although some studies suggested it could travel as far as 10,000km if fired on a maximum trajectory.

This would have given Pyongyang its first truly intercontinental ballistic missile, capable of reaching New York.

Eventually, the Hwasong-15 was tested, peaking at an estimated altitude of 4,500km – 10 times higher than the International Space Station.

If fired on a more conventional “flatter” trajectory, the missile could have a maximum range of some 13,000km, putting all of the continental US in range.

North Korea continued to develop its nuclear and ballistic missile programs during the past year and cyberattacks on cryptocurrency exchanges were an important revenue source for Pyongyang, according to an excerpt of a confidential United Nations report seen on Saturday by Reuters.

The annual report by independent sanctions monitors was submitted on Friday evening to the U.N. Security Council North Korea sanctions committee.

“Although no nuclear tests or launches of ICBMs (intercontinental ballistic missiles) were reported, DPRK continued to develop its capability for production of nuclear fissile materials,” the experts wrote.

North Korea is formally known as the Democratic People’s Republic of Korea (DPRK). It has long-been banned from conducting nuclear tests and ballistic missile launches by the U.N. Security Council. Since 2006, North Korea has been subject to U.N. sanctions, which the Security Council has strengthened over the years in an effort to target funding for Pyongyang’s nuclear and ballistic missile programs.

The sanctions monitors noted that there had been a “marked acceleration” of missile testing by Pyongyang.

The United States and others said on Friday that North Korea had carried out nine ballistic missile launches in January, adding it was the largest number in a single month in the history of the country’s weapons of mass destruction and missile programs.

CYBERATTACKS, ILLICIT TRADE

The monitors said “cyberattacks, particularly on cryptocurrency assets, remain an important revenue source” for North Korea and that they had received information that North Korean hackers continued to target financial institutions, cryptocurrency firms and exchanges.

“According to a member state, DPRK cyberactors stole more than $50 million between 2020 and mid-2021 from at least three cryptocurrency exchanges in North America, Europe and Asia,” the report said.

The monitors also cited a report last month by cybersecurity firm Chainalysis that said North Korea launched at least seven attacks on cryptocurrency platforms that extracted nearly $400 million worth of digital assets last year.

In 2019, the U.N. sanctions monitors reported that North Korea had generated an estimated $2 billion for its weapons of mass destruction programs using widespread and increasingly sophisticated cyberattacks.

The latest report said North Korea’s strict blockade in response to the COVID-19 pandemic meant “illicit trade, including in luxury goods, has largely ceased.”

Over the years the U.N. Security Council has banned North Korean exports including coal, iron, lead, textiles and seafood, and capped imports of crude oil and refined petroleum products.

“Although maritime exports from DPRK of coal increased in the second half of 2021, they were still at relatively low levels,” the monitors said.

“The quantity of illicit imports of refined petroleum increased sharply in the same period, but at a much lower level than in previous years,” the report said. “Direct delivery by non-DPRK tankers to DPRK has ceased, probably in response to COVID-19 measures: instead, only DPRK tankers delivered oil.”

North Korea’s humanitarian situation “continues to worsen,” the report said. The monitors said that was probably due to the COVID-19 blockade, but that a lack of information from North Korea meant it was difficult to determine how much U.N. sanctions were unintentionally harming civilians.

***

Military equipment is seen during a military parade to commemorate the 8th Congress of the Workers' Party in Pyongyang, North Korea January 14, 2021 in this photo supplied by North Korea"s Central News Agency (KCNA).  Missiles on display at a January 2021 military parade

“From 2020 to 2021, the number of North Korean-linked hacks jumped from four to seven, and the value extracted from these hacks grew by 40%,” Chainalysis said in a report.

The hackers used a number of techniques, including phishing lures, code exploits and malware to siphon funds from the organisations’ “hot” wallets and then moved them into North Korea-controlled addresses, the company said.

Chainalysis said it is likely that many of last year’s attacks were conducted by the so-called Lazarus Group, a hacking group which the US has applied sanctions against.

The group is believed to be controlled by North Korea’s primary intelligence bureau, the Reconnaissance General Bureau.

The Lazarus Group has previously been accused of involvement in the “WannaCry” ransomware attacks, the hacking of international banks and customer accounts and cyber-attacks on Sony Pictures in 2014.

“Once North Korea gained custody of the funds, they began a careful laundering process to cover up and cash out,” the report on last year’s cyber attacks added.

A United Nations panel that monitors sanctions on North Korea has accused Pyongyang of using stolen funds to support its nuclear and ballistic missile programmes as a way to avoid international sanctions.

Separately, in February last year, the US charged three North Korean computer programmers with a massive hacking spree aimed at stealing more than $1.3bn in money and cryptocurrency. BBC

America is Still Being Fleeced by Coddling China

Surfing? Really?

According to a recent grant notice, the United States’ Mission to China is funding a $25,000 grant to “carry out a program to engage Hainan’s surfing community and local environmentally active social media influencers on the topic of climate change and impacts to ocean environments.” It’s your tax dollars at work in the surf of the South China Sea.

That’s right. While Beijing continues its military buildup in the South China Sea, the Biden Administration is making sure surfers enjoy the waves!

The grant describes the ideal program activities to include:

  • “one surfing clinic, environmental protection activity and climate discussion led by popular Chinese surfing athletes and including U.S. Consulate staff and local environmentally active social media influencers”;
  • “one video product based on the surfing clinic, activity and discussion that includes messaging on the connections between local ocean communities, climate change and the importance of global climate action”;
  • “one million post views on multiple Chinese platforms of final video product after being shared by program participants.”

SMH..but there is more.

Remember John Podesta? Well he has a brother….Tony and where Tony goes, so goes John.

Well-connected Democrat Tony Podesta raked in $1 million last year lobbying the Biden White House on behalf of Chinese telecommunications giant Huawei.

Podesta started work for Huawei in August as the company attempts to free itself of Trump administration-rallied restrictions on the brand.

https://www.sott.net/image/s30/615464/full/1_Tony_Podesta_Huawei_Huawei_A.jpg

Podesta’s brother is Democratic Party bigwig John Podesta — who was Hillary Clinton’s 2016 campaign chairman after working as a White House adviser to President Barack Obama and as Chief of Staff to President Bill Clinton.

According to public disclosure forms released this week, Tony Podesta earned $500,000 lobbying the “Executive Office of the President” on “Issues related to telecommunication services and impacted trade issues” in the fourth quarter of 2021.

In the third quarter of 2021, Podesta disclosed another $500,000 from Huawei to lobby the “White House Office” on “Issues related to telecommunication services and impacted trade issues.” Huawei, a giant tech operation has been blacklisted. Who approved this?

While there remains historic issues with all things China including that Wuhan Lab China virus thing, the Biden administration seems not to care at all about China buying up commercial and residential real estate around the country.

The Chinese Communist Party (CCP) is continuing its U.S. agricultural takeover, buying hundreds of thousands of arable acres across the nation. The purchase of U.S. land is part of the CCP’s food security initiative, posing a significant threat to food and national security for the American public. Republicans appear willing to confront the risk by introducing amendments to H.R. 4356 and 2022 Agricultural Appropriations bill to limit land ownership and tax incentives for foreign investors.

One large purchase that was tracked was made by a Chinese billionaire named Sun Guangxin and his company GH America Energy LLC, a subsidiary of China’s Guanghui Energy Company. Sun spent $110 million purchasing 140,000 acres in a Texas county near the Mexico border and Laughlin Air Force Base.

The land was set aside for the owner to build a wind-farm to feed into Texas’ electricity grid. Known as Blue Hills Wind development, local ranchers, politicians, and the US Military were quick to note the proximity of the development as a serious risk for multiple threats from hostile actors.

The wind-farm development was only 70 miles from Laughlin, raising concerns of potential efforts to spy or “otherwise interfere with US flight training.” Military outlets further noted that the power supply to the Air Force base could be vulnerable should the development go ahead.

In 2017, ChemChina, a Chinese state-owned enterprise, acquired Syngenta for $43 billion. While mainstream news media argue that the takeover was a bad deal for China, it offers significant long-term leverage over global and domestic food production.

Syngenta is the world’s largest crop protection maker and third-largest seed supplier. The now CCP-backed company operates in 16 different states, invests in agricultural research and development every year, and employs more than 4,000 Americans in 41 states, according to Newsweek.

Despite America suffering supply chain shortages, leaving shelves bare, the Biden’s Secretary of Agriculture Tom Vilsack continues to build strong ties with the CCP. Vilsack’s efforts in support of China came after reports surfaced of China’s land purchases posing a significant threat to American national security. source

 

Chinese Military Aggression Towards Taiwan is Escalating, Biden Ignores

A small congressional delegation arrived in Taiwan last week to assess the defense conditions and operations in Asia. It is remarkable however that prior to the departure, the Chinese embassy in Washington DC sent an email demanding the trio be cancelled. Imagine that…our elected officials are supposed to comply to the Chinese Communist Party and their demands?

In part from Axios:

  • Six Republican lawmakers who visited Taiwan earlier this month to meet with Tsai and other Taipei officials faced similar calls from Beijing’s embassy in Washington, per Foreign Policy.
  • Rep. Mark Takano (D-Calif.), the House Veterans’ Affairs chair, and leader of the delegation to Taiwan, praised Taiwan to Tsai as a “democratic success story, a reliable partner and a force for good in the world,” in comments that are sure to further anger Beijing, per Reuters.

“Under [Tsai’s] administration, the bonds between us are more positive and productive than they have been for decades. Our commitment to Taiwan is rock solid and has remained steadfast as the ties between us have deepened. Taiwan is a democratic success story, a reliable partner and a force for good in the world.”

— Rep. Takano

The big picture: Takano, Slotkin and Reps. Nancy Mace (R-S.C.), Colin Allred (D-Texas) and Sara Jacobs (D-Calif.) were in Taiwan to discuss matters including regional security, U.S.-Taiwan relations “and other significant issues of mutual interest” with Taipei officials, per a statement from the American Institute in Taiwan, the de facto embassy.

  • Slotkin tweeted Thursday, “The auto industry’s largest supplier of microchips is here in Taiwan, so supply chain issues will most definitely be on the agenda.”

Background: The Chinese government has in recent months escalated military and political pressure in its claims over the island, which separated from China in 1949 amid civil war.

Go deeper: Taiwan among 110 participants invited to Biden’s “Summit for Democracy”

Meanwhile, as a response to the trip, China decided to once again threaten the region with 27 aircraft invading a ‘buffer zone‘.

Taiwan’s defense ministry says its air forces were mobilized to warn off 27 Chinese warplanes. The incursion into Taiwan’s air defense zone included 18 fighter jets, five nuclear-capable bombers and a refueling aircraft.

Taiwan’s defense ministry said Sunday the island’s air force had scrambled fighter jets to warn off 27 Chinese aircraft that had entered its air defense identification zone (ADIZ) while missile systems were deployed for monitoring purposes.

Taiwan’s ADIZ is not the same as its territorial air space but instead is self-declared airspace that is monitored for national security purposes.

The latest ratcheting up of tensions comes on the heels of a US Congressional delegation to the island, the second this month in support of Taiwan.

China has vowed to take back Taiwan by force if necessary.

Beijing disapproves of anything that lends international legitimacy and recognition to the government in Taipei and registered its disapproval of American lawmakers visiting the island.

Taiwan Scrambles Fighters to Warn Off Chinese Aircraft as ...

What happened in Taiwan’s ADIZ?

The Chinese air force sent 18 fighter jets, five nuclear-capable H-6 bombers and a Y-20 aerial refueling jet, suggesting China may have refueled mid-flight. The Chinese military is still working on its mid-air refueling capabilities as it seeks to project power around the globe.

In the map provided by the Taiwanese defense ministry, the H-6 bombers and six of the fighter jets flew south of Taiwan into the Bashi Channel separating Taiwan from the Philippines before steering out into the Pacific and returning to China.

Taiwan has complained for months of incursions into its ADIZ by China’s air force, usually in the southwestern part near the Pratas Islands which it controls.

Why are tensions high between Beijing and Taipei now?

On Friday, a spokesperson for the Eastern Theater Command of the People’s Liberation Army said the Chinese military carried out “naval and air force combat readiness patrol in the direction of the Taiwan Strait.”

SecDef and SecState Announce they have no Clue What Russia is Doing

That is a pathetic condition by our agency secretaries and that means the National Security Council at the White House along with the president himself have no clue, hence no policy. What is the problem with Russia you ask?

Not in order of priority.

1.

Early on November 15 astronauts aboard the International Space Station received an unexpected directive: Seek shelter in your docked spacecraft in case of a catastrophic collision. The station was about to pass through a freshly created cloud of orbital debris that posed a significant risk to the seven space travelers on board.

Four NASA astronauts, who had arrived just last week retreated, to their SpaceX Dragon capsule, while Russia’s two cosmonauts and another NASA astronaut took cover in their Soyuz spacecraft. They stayed inside these orbital lifeboats for about two hours, then repeated the exercise roughly 90 minutes later, as the station again passed through the new debris cloud. NASA has since canceled a handful of planned activities, warning that the schedule would be in flux.

“It’s a crazy way to start a mission,” mission control told the crew during a briefing.

The U.S. State Department later confirmed that the debris endangering the space station was produced when Russia tested an anti-satellite (ASAT) weapon and intentionally destroyed one of its own defunct satellites. The impact left behind hundreds of thousands of debris objects that now pose a risk to the ISS crew and other satellites in low-Earth orbit (LEO).

“Even though we know they have this capability, we were shocked that they chose to test it as they did,” says Kaitlyn Johnson, deputy director of the Aerospace Security Project at the Center for Strategic and International Studies. The test shredded a satellite whose orbit intersects with the path of the ISS, putting the humans on board, including Russian cosmonauts, at risk.

“The things rumbling around my mind are: Why now? What is this tied to? What message are they trying to send? And why that specific satellite?” she says.

The Russian defense ministry has since released a statement confirming the test but denying any risk to the space station: “The U.S. knows for certain that the resulting fragments, in terms of test time and orbital parameters, did not and will not pose a threat to orbital stations, spacecraft and space activities.” more details

2.

Russia has more than 92,000 troops amassed around Ukraine’s borders and is preparing for an attack by the end of January or beginning of February, the head of Ukraine’s defense intelligence agency told Military Times.

Such an attack would likely involve airstrikes, artillery and armor attacks followed by airborne assaults in the east, amphibious assaults in Odessa and Mariupul and a smaller incursion through neighboring Belarus, Ukraine Brig. Gen. Kyrylo Budanov told Military Times Saturday morning in an exclusive interview.

Russia’s large-scale Zapad 21 military exercise earlier this year proved, for instance, that they can drop upwards of 3,500 airborne and special operations troops at once, he said.

The attack Russia is preparing, said Budanov, would be far more devastating than anything before seen in the conflict that began in 2014 that has seen some 14,000 Ukrainians killed. source

3.

HALIFAX, Nova Scotia — A top Space Force official admitted on Saturday that the U.S. has “catching up to do very quickly” to match Beijing’s hypersonic capability, one week after China successfully launched a missile that circled the globe before striking a target.

Russia also launched a hypersonic missile from a warship in the Arctic this week, underscoring how quickly Washington, D.C.’s two primary competitors are racing ahead in this technology.

“We’re not as advanced as the Chinese or the Russians in terms of hypersonic programs,” Gen. David Thompson, vice chief of space operations, said during his appearance at the Halifax International Security Forum.

Hypersonic missiles fly at least five times the speed of sound, but their ability to glide on the atmosphere while changing direction at such a high speed makes them virtually impossible — with existing radars — to track and destroy.

While the Pentagon has pushed the development of new hypersonic missiles, the Army isn’t slated to field its first missile until 2024. The Navy is aiming to put its own version of the missile on a destroyer in 2025 and on Virginia-class submarines in 2028.

“It should be no surprise to anyone that China is developing capabilities that would be viewed negatively by like minded allies and partners,” Adm. John Aquilino, head of U.S. Indo-Pacific Command, told a small group of reporters on the sideline of the event.

The Space Force is working to “figure out the type of satellite constellation that we need” to track these missiles, Thompson told POLITICO after his public remarks. “It’s a new challenge, but it’s not that we don’t have an answer to this challenge. We just have to understand it, fully design it, and fly it.”

While there’s no timeline for when these new satellites can get into orbit, “we’re evolving our approach and our timelines rapidly,” Thompson said.

Both Thompson and Aquilino expressed concerns for how the often slow and risk-averse acquisition process is affecting the military competition from under the sea and into space.

“The bureaucracy that we’ve built into our defense and acquisition enterprise, not just in space but in other areas, has slowed us down in many areas,” Thompson said. “The fact that we have not needed to move quickly for a couple of decades — in the sense of a strategic competitor with these capabilities — has not driven us or required us to move quickly.”      In this photo taken from a video distributed by Russian Defense Ministry Press Service on Oct. 7, 2020, Russian Zircon hypersonic cruise missile is launched from the Admiral Groshkov frigate, in the White Sea, north of Russia.  In this photo taken from a video distributed by Russian Defense Ministry Press Service on Oct. 7, 2020, Russian Zircon hypersonic cruise missile is launched. Washington, D.C.’s two primary competitors, China and Russia, are racing ahead in this technology. | Russian Defense Ministry Press Service via AP

4.

The Russian Air Force is training Syrian MiG-29 pilots in air-to-air training, the Russian Ministry of Defence’s Zvezda TV channel reported on 15 November.

“An important stage in the training of any pilot is the launch of guided air-to-air missiles,” Zvezda quoted Maxim Aleksanin, a Russian squadron commander, as saying. “For the first time, Syrian pilots used R-73 guided missiles from MiG-29 aircraft. In the future, we plan to improve the tactics of conducting close and long-range air combat in order to prevent provocations in the skies of Syria, as well as near its borders.”

The video that accompanied the report showed two Syrian MiG-29s (3431 and 3436) being prepared and taking off with R-73 missiles, although not launching them, and at least one was shown carrying a missile as it landed.

Hunter’s Deal with China on Cobalt, Slaves and Human Rights Violations

It is not just about batteries for electric vehicles, it is really all batteries and the Obama/Biden administration allowed this nefarious deal to happen.

The Biden family began gifting China with anything it wanted and it continues now in the Biden presidency.

Congo and the cobalt mines employ slaves….even child slaves. so, let’s begin here shall we?

Google parent Alphabet, Apple, Dell, Microsoft and Tesla won’t have to face a class action suit claiming the tech giants bear responsibility for the alleged use of child labour in Congo to mine cobalt, a key ingredient of batteries in electric cars and consumer electronics, a federal court in Washington ruled Tuesday.

An NGO called International Rights Advocates launched the suit in December 2019, on behalf of more than a dozen families of children killed or hurt in the artisinal cobalt mines in the Congo, responsible for more than two-thirds of global production of the metal. source

If the whole world wants cobalt, and all the cobalt is in Congo, why are  people in the country dying of hunger?

The president’s son was part owner of a venture involved in the $3.8 billion purchase by a Chinese conglomerate of one of the world’s largest cobalt deposits. The metal is a key ingredient in batteries for electric vehicles.

NYT’s: An investment firm where Hunter Biden, the president’s son, was a founding board member helped facilitate a Chinese company’s purchase from an American company of one of the world’s richest cobalt mines, located in the Democratic Republic of Congo.
Mr. Biden and two other Americans joined Chinese partners in establishing the firm in 2013, known as BHR and formally named Bohai Harvest RST (Shanghai) Equity Investment Fund Management Company.
The three Americans, all of whom served on the board, controlled 30 percent of BHR, a private equity firm registered in Shanghai that makes investments and then flips them for a profit. The rest of the company is owned or controlled by Chinese investors that include the Bank of China, according to records filed with Chinese regulators.
One of BHR’s early deals was to help finance an Australian coal-mining company controlled by a Chinese state-owned firm. It also assisted a subsidiary of a Chinese defense conglomerate in buying a Michigan auto parts maker.
The firm made one of its most successful investments in 2016, when it bought and later sold a stake in CATL, a fast-growing Chinese company that is now the world’s biggest maker of batteries for electric vehicles.
The mining deal in Congo also came in 2016, when the Chinese mining outfit China Molybdenum announced that it was paying $2.65 billion to buy Tenke Fungurume, a cobalt and copper mine, from the American company Freeport-McMoRan.
Glencore to Reopen One of World's Biggest Cobalt Mines in Congo - Bloomberg
As part of that deal, China Molybdenum sought a partner to buy out a minority stakeholder in the mine, Lundin Mining of Canada. That is when BHR became involved.
Records in Hong Kong show that the $1.14 billion BHR, through subsidiaries, paid to buy out Lundin came entirely from Chinese state-backed companies.
China Molybdenum lined up about $700 million of that total as loans from Chinese state-backed banks, including China Construction Bank. BHR raised the remaining amount from obscure entities with names like Design Time Limited, an offshore company controlled by China Construction’s investment bank, according to the Hong Kong filings.
Before the deal was done, BHR also signed an agreement that allowed China Molybdenum to buy BHR’s share of the mine, which the company did two years later, the filings show. That purchase gave China Molybdenum 80 percent ownership of the mine. (Congo’s state mining enterprise kept a stake for itself.)
By the time BHR sold its share in 2019, Mr. Biden controlled 10 percent of the firm through Skaneateles L.L.C., a company based in Washington. While Chinese corporate records show Skaneateles remains a part owner of BHR, Chris Clark, a lawyer for Mr. Biden, said that he “no longer holds any interest, directly or indirectly, in either BHR or Skaneateles.” The Chinese records show that Mr. Biden was no longer on BHR’s board as of April 2020. Mr. Biden did not respond to requests for comment.
A former BHR board member told The New York Times that Mr. Biden and the other American founders were not involved in the mine deal and that the firm earned only a nominal fee from it. The money, the former board member said, went into the firm’s operating funds and was not distributed to its owners.
It is unclear how the firm was chosen by China Molybdenum. Current executives at BHR did not return emails and phone calls seeking comment. “We don’t know Hunter Biden, nor are we aware of his involvement in BHR,” Vincent Zhou, a spokesman for China Molybdenum, said in an email.
A dozen executives from companies involved in the deal, including Freeport McMoRan and Lundin, said in interviews that they were not given a reason for BHR’s participation. Most of the executives also said they were unaware during the deal of Mr. Biden’s connection to the firm.
Paul Conibear, Lundin’s chief executive at the time, said it was made clear that China Molybdenum was leading the transaction even though the buyer of Lundin’s stake was BHR.
“I never really understood who they were,” Mr. Conibear said of BHR.
When the mine was sold, Mr. Biden’s father was near the end of his term as vice president. In the run-up to the 2020 presidential election, Hunter Biden’s business ties in China were widely publicized.
But BHR’s role in the Chinese mine purchase was not a major focus. It has taken on new relevance because the Biden administration warned this year that China might use its growing dominance of cobalt to disrupt America’s retooling of its auto industry to make electric vehicles. The metal is among several key ingredients in electric car batteries.
When asked if the president had been made aware of his son’s connection to the sale, a White House spokesman said, “No.”