US shuts down North Korean crypto laundering network

The US Treasury’s Office of Foreign Assets Control has imposed sanctions on two individuals and a company in the United Arab Emirates for facilitating North Korea’s illicit use of digital assets.

Sanctions target Lu Huaying and Zhang Jian, both based in the United Arab Emirates, and Green Alpine Trading, LLC, a front company linked to a broader money laundering scheme.

These sanctions and actions hope to disrupt a network that allegedly funnels millions of dollars into North Korea’s weapons of mass destruction and ballistic missile programs. according to to a press release from the American government.

North Korea is known for mining digital assets and cybercrime to finance the development of its nuclear weapons and missiles. The diet employs computer scientists and hackers to generate funds, often disguising their origins through complex laundering operations.

The sanctioned individuals and the UAE-based company allegedly operated under the leadership of Sim Hyon Sop, a representative of the Korean state-owned Korea Kwangson Banking Corporation, which has already been sanctioned.

Sim is accused of using a combination of cryptocurrency withdrawals and money mules to launder funds. The funds were then redirected to North Korea to finance its military programs. Both Lu and Zhang allegedly contributed to these efforts by converting cryptocurrency into traditional currency and acting as couriers.

Implications of sanctions

Under the sanctions imposed, any property owned by the designated persons or entities in the United States is blocked. U.S. citizens and businesses are prohibited from transacting with them.