U.S. Imposes Sanctions on North Korean Financial Institutions and Individuals Linked to Cryptocurrency Money Laundering

The U.S. Treasury’s Office of Foreign Assets Control has imposed sanctions on eight individuals and two entities in North Korea associated with laundering proceeds from cyber activities and schemes involving information technology workers.

This action was outlined in a Treasury announcement released on November 4, targeting channels that have facilitated the movement of stolen digital assets and contractor earnings through dollar systems, thereby increasing compliance risks for exchanges, brokers, custodians, and wallet providers that may interact with those funds.

The announcement connects these activities to weapons programs and references a recent multilateral monitoring report regarding sanctions evasion through cyber theft and IT contracting. The update also introduces new data for screening purposes, including cryptocurrency addresses linked to a previously designated bank.

Today, Treasury’s Office of Foreign Assets Control took decisive sanctions action against North Korean cybercrime and IT worker fraud that the regime uses to fund its weapons of mass destruction and ballistic missile programs. Over the past three years, North Korea-affiliated…

— Treasury Department (@USTreasury) November 4, 2025

Who Was Designated and How The Networks Operated

OFAC has designated North Korean bankers Jang Kuk Chol and Ho Jong Son for overseeing funds on behalf of First Credit Bank, which includes $5.3 million in cryptocurrency.

Korea Mangyongdae Computer Technology Company was designated for managing information technology worker delegations in China that utilized proxies to transfer funds, and U Yong Su was designated for representing the company.

Ryujong Credit Bank was designated for providing financial services that facilitated sanctions evasion between China and North Korea, including remittances, laundering, and transactions for overseas workers.

Further designations included representatives of DPRK financial institutions based in China and Russia, with the Treasury detailing transfers in U.S. dollars, Chinese yuan, and euros, as well as connections to previously sanctioned banks and front companies.

The announcement mentions over $3 billion stolen in three years, primarily in cryptocurrency, linking cyber theft and IT income to the same financing channels.

“North Korean state-sponsored hackers steal and launder money to fund the regime’s nuclear weapons program,” stated John K. Hurley, Under Secretary of the Treasury for Terrorism and Financial Intelligence.

“By generating revenue for Pyongyang’s weapons development, these actors directly threaten U.S. and global security. Treasury will continue to pursue the facilitators and enablers behind these schemes to cut off the DPRK’s illicit revenue streams,” he added.

What Comes After New Sanctions On North Korea

As a result of these measures, property and interests in property of designated individuals within the United States or controlled by U.S. persons are blocked, and entities owned fifty percent or more by blocked individuals are also restricted.

Transactions involving such property are generally prohibited unless authorized or exempt, placing the responsibility on crypto businesses to verify counterparties and to stop transactions that involve listed names or associated addresses.

The Treasury cautioned that financial institutions and others engaging with designated parties may be subject to sanctions or enforcement actions.

The agency also reiterated that removal from the list is possible under established procedures, which maintains a formal pathway for petitions while current restrictions are in place.

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