The U.S. Treasury Department has announced sanctions against two individuals and one entity involved in laundering cryptocurrencies for the North Korean regime.
The U.S. Treasury Department has announced sanctions against two individuals and one entity involved in laundering cryptocurrencies for the North Korean regime.
This action targets a broader network allegedly orchestrated by Sim Hyon Sop, a sanctioned representative of the Democratic People’s Republic of Korea (DPRK).
The sanctioned individuals, Chinese nationals Lu Huaying and Zhang Jian, were reportedly operating through a front company based in the United Arab Emirates called Green Alpine Trading. The Treasury's Office of Foreign Assets Control (OFAC) has now designated this company as a sanctioned organization.
According to the Treasury’s statement, North Korea continues to exploit agents and proxies to penetrate the international financial system, engaging in illicit activities such as fraudulent IT work, digital asset theft, and money laundering.
These operations are believed to support the DPRK’s weapons of mass destruction and ballistic missile programs.
Notably, North Korean hacker groups, including the notorious Lazarus Group, have been implicated in some of the most significant crypto hacks, including a $600 million theft from the Ronin Ethereum sidechain in 2022.
Reports indicate that these hackers often masquerade as recruiters or high-ranking executives within crypto investment firms to deceive potential victims.
In March, South Korea's Yonhap News Agency reported, citing the UN Security Council, that North Korea’s state-backed hacker groups are estimated to generate approximately 50% of the country's foreign currency.
A substantial portion of these funds is believed to be allocated toward developing weapons programs.
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