United States Takes Action Against Illicit Activities Facilitating North Korean Financial Evasion
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Treasury Cracks Down on North Korean Sanctions Evasion Through Crypto Laundering
In a bold move to disrupt the illicit activities of the Democratic People’s Republic of Korea (DPRK), the United States Department of the Treasury has announced the designation of two individuals and one entity involved in facilitating millions of dollars in illegal funds for North Korea.
The Office of Foreign Assets Control (OFAC) has imposed sanctions on Lu Huaying and Zhang Jian, both residing in the United Arab Emirates (UAE), as well as Green Alpine Trading, LLC, a UAE-based front company complicit in these nefarious activities. The Treasury Department’s action aims to thwart North Korea’s efforts to circumvent international financial sanctions through crypto laundering.
North Korean Sanctions Evasion Through Crypto Laundering
The OFAC has accused Sim Hyon Sop, a representative of the DPRK’s Korea Kwangson Banking Corp (KKBC) based in China, of orchestrating money laundering schemes. These activities involve setting up shell companies and exploiting vulnerabilities to transfer stolen funds across various platforms.
This development comes on the heels of several high-profile crypto heists attributed to North Korean hacking groups. In recent months, these malicious actors have perpetrated a string of attacks, including the November 2024 Radiant Capital hack, which resulted in the loss of $50 million.
The Treasury Department’s announcement underscores its commitment to dismantling the financial networks that enable the Kim regime’s destabilizing activities. In addition to collaborating with international law enforcement agencies, such as the FBI and Swiss prosecutors, the US government is taking a proactive stance against these schemes.
North Korean Hackers Execute Wide-Ranging Crypto Heist
This recent surge in North Korean cybercrime has led to significant financial losses within the crypto industry. Reports have emerged of hackers using fake identities to infiltrate over 25 crypto projects, resulting in the theft of $1.3 million. Furthermore, a fake NFT game exploited by North Korean attackers stole wallet credentials and led to the loss of millions.
In a related incident, South Korean authorities confirmed that Lazarus Group and Andariel orchestrated the 2019 Upbit hack, which saw the theft of $50 million worth of Ethereum (ETH). The stolen funds were laundered through various platforms.
This aggressive stance by Treasury reflects the global crypto community’s growing unease with North Korea’s increasingly brazen cybercrime activities.
Source: cryptopotato.com
