Washington targets North Korea’s crypto laundering network in latest sanctions push
As countries and crypto businesses struggle with attacks by North Korea’s state-sponsored hackers and "IT workers," the US has sanctioned bankers and institutions that helped launder stolen funds.
As countries and crypto businesses struggle with attacks by North Korea’s state-sponsored hackers and "IT workers," the US has sanctioned bankers and institutions that helped launder stolen funds.
In total, this time, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on eight individuals and two entities, meaning that, among other things, their property in the US is blocked and transactions with these individuals and entities are prohibited.
For example, according to OFAC, two Democratic People’s Republic of Korea (DPRK) bankers, Jang Kuk Chol (Jang) and Ho Jong Son, helped manage funds, including $5.3 million in crypto assets, on behalf of OFAC-designated First Credit Bank. Meanwhile, an unspecified portion of these funds "can be linked" to a DPRK ransomware actor that has previously targeted U.S. victims and handled revenue from DPRK IT workers.
Also, a local IT company, Korea Mangyongdae Computer Technology Company (KMCTC), has been accused of using Chinese nationals as banking proxies who help launder funds stolen by DPRK IT workers.
The US government also claims that the DPRK is using a vast international network of DPRK financial institution representatives who help launder money via international markets and financial systems.
"This network is comprised of banking representatives, financial institutions, and shell companies located in North Korea and internationally, including in China and Russia," OFAC said.
It’s estimated that over the past three years, North Korea-affiliated cybercriminals, known for their advanced malware and social engineering techniques, have stolen over $3 billion, mostly in crypto assets.
What’s more, when it comes to IT workers, OFAC also claims that North Korean IT workers infiltrating Western organizations by hiding their identities sometimes even collaborate with other freelancers on projects originally commissioned to those workers and split the revenue.
"By generating revenue for Pyongyang’s weapons development, these actors directly threaten US and global security. Treasury will continue to pursue the facilitators and enablers behind these schemes to cut off the DPRK’s illicit revenue streams," Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley said.
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