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UAE Company Caught in Crypto Laundering Scheme Supporting North Korea’s WMDs
The United Arab Emirates (UAE) has been caught in a major crypto laundering scheme, which has direct ties to North Korea’s weapons of mass destruction (WMDs). The Office of Foreign Assets Control (OFAC) has imposed sanctions on two individuals and an associated company linked to the scheme.
According to reports, Lu Huaying and Zhang Jian used Green Alpine Trading LLC as an intermediary front. They worked in tandem with Sim Hyon Sop, who serves as the board of directors for North Korea’s Korea Kwangson Banking Corp (KKBC). Sim is responsible for managing elaborate money laundering solutions that enabled funds from North Korean IT personnel and cybercriminals to reach the regime’s coffers.
Between February 2022 and September 2023, Lu Huaying was cashing out cryptocurrency received from unlawful operations. Zhang Jian also acted as a postman, repeatedly transferring Sim’s funds outside of the country. These transferred funds were allegedly used to purchase military-related resources in North Korea.
The scheme highlights North Korea’s growing reliance on cryptocurrencies to bypass sanctions and finance activities that destabilize the region. Despite recommendations from partners worldwide, Pyongyang has exploited vulnerabilities within digital financial systems, posing a threat to global security.
The sanctions imposed by OFAC restrict all U.S.-associated property of the named persons and companies. Additionally, they bar these entities from engaging in business transactions with those in the United States of America.
This development underscores the urgent need for countries worldwide to monitor such activities and prevent similar schemes from emerging.
Source: coinpedia.org
