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The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on two individuals and one entity for laundering millions of dollars in illegal funds for North Korean operatives.
The targeted network, headed by a previously sanctioned North Korean agent, enabled cryptocurrency conversions and money laundering to support the regime’s weapons of mass destruction (WMD) and ballistic missile initiatives.
US Treasury Targets North Korea’s Cybercrime Network, Freezing Millions in Illegal Funds
On Tuesday, the U.S. Treasury Department revealed that it had dismantled a North Korean money laundering network that facilitated the conversion of cryptocurrency into cash, allowing the regime to clean millions of dollars.
.@USTreasury’s Office of Foreign Assets Control is sanctioning two individuals and one entity involved in a network that launders millions of dollars of illicit funds generated by the Democratic People’s Republic of Korea IT workers and cybercrime to support the DPRK Government.
— Treasury Department (@USTreasury) December 17, 2024
The network includes a front company in the United Arab Emirates (UAE) and two Chinese nationals, which North Korea utilized as a cover to exploit crypto assets to evade sanctions.
According to the Treasury, Chinese nationals Lu Huaying and Zhang Jian operated through a UAE-based front company, Green Alpine Trading, LLC, to cash out cryptocurrency generated from North Korea’s fraudulent IT operations and cybercrime activities.
In response, the U.S. government added Green Alpine Trading to its sanctions blacklist, along with Chinese nationals Lu Huaying and Zhang Jian, who have been key figures in the operation since 2022.
According to the Treasury, the network reportedly worked with a North Korean agent, Sim Hyon Sop, to launder funds derived from “illicit revenue generation schemes.”
From his location in China, Sim manages schemes that conceal illicit funds, utilizing cryptocurrency and international accomplices to transfer money.
OFAC reports that since early 2022, Lu Huaying has been instrumental in converting cryptocurrency into fiat currency through cash-outs and money mule networks.
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Between 2022 and September 2023, Lu facilitated several million dollars in laundering on Sim’s behalf. The funds were utilized to acquire goods and services that benefit North Korea.
In a similar capacity, Zhang Jian assisted in exchanging fiat currency and occasionally acted as a courier for Sim’s operations.
Green Alpine Trading provided financial and logistical assistance to Sim’s network, facilitating the movement of illicit funds. It has now been sanctioned for aiding North Korea’s attempts to bypass global financial restrictions.
While specific details regarding the total volume of laundered funds were not disclosed, the operation is believed to have contributed to North Korea’s broader efforts to finance its nuclear weapons program.
UAE Aids in Disrupting North Korea’s Crypto Laundering Network: What Lies Ahead?
The United Arab Emirates was involved in the network’s dismantling, according to the Treasury’s press release.
However, the current status of the sanctioned individuals, Lu Huaying and Zhang Jian, remains uncertain.
North Korea has gained infamy as one of the most aggressive state actors in crypto-related crime.
U.S. officials have accused North Korean operatives of stealing billions of dollars worth of cryptocurrency to support the country’s nuclear ambitions.
However, to make these digital assets functional, North Korea depends on laundering mechanisms to convert the crypto into traditional fiat currency.
US cybersecurity firm Recorded Future reports North Korean hackers stole over $3 billion in crypto from 2017 to 2023.
Recent concerns include Cosmos’ Liquid Staking Module, which allegedly involves North Korean developers and FBI warnings of malware-laden fake job offers.
The post U.S. Treasury Shuts Down North Korean Crypto Money Laundering Network appeared first on Cryptonews.
