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US Sanctions North Korean Bankers for Crypto Laundering Scheme

US Treasury sanctions eight North Korean individuals and two companies for laundering over $3 billion in stolen cryptocurrency linked to Pyongyang’s weapons programs.

  • The US Treasury sanctioned eight North Korean individuals and two companies for laundering cryptocurrency linked to Pyongyang’s weapons programs.
  • Two bankers managed $5.3 million in cryptocurrency for the sanctioned First Credit Bank.
  • North Korean Hackers have stolen over $3 billion in cryptocurrency using Malware and fake IT work schemes.
  • The sanctions include North Korean IT companies operating in China that use false identities to work abroad and send earnings back to North Korea.
  • The restrictions block all property under US jurisdiction and prohibit US persons from dealing with the designated entities and individuals.

The US Treasury Department has imposed sanctions on eight North Korean nationals and two companies accused of laundering cryptocurrency stolen through Hacking and fraudulent IT work. The sanctions aim to cut off funding sources for North Korea’s nuclear weapons program. The network operates across China, Russia, and North Korea and involves bankers, hackers, and IT workers.

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According to the Office of Foreign Assets Control, part of the Treasury, North Korean hackers have stolen more than $3 billion in cryptocurrency over the past three years using advanced malware and social engineering—tricking victims into revealing sensitive information. One recent large theft was $1.5 billion in Ether from the crypto exchange Bybit in February, facilitated by a fake stock trading simulator. Details are in a Treasury statement.

The sanctions name two bankers, Jang Kuk Chol and Ho Jong Son, who managed $5.3 million in crypto funds connected to the already-sanctioned First Credit Bank. The Treasury linked some of these funds to a North Korean Ransomware group that targeted US victims. Additionally, the Korea Mangyongdae Computer Technology Company and its president, U Yong Su, were sanctioned for organizing IT workers in Chinese cities like Shenyang and Dandong. These workers used false or stolen identities to secure freelance contracts overseas and transfer earnings to North Korea.

“By generating revenue for Pyongyang’s weapons development, these actors directly threaten US and global security,” said John K. Hurley, Treasury’s Under Secretary for Terrorism and Financial Intelligence.

The sanctions also target the Ryujong Credit Bank and North Korean representatives in China and Russia who handled millions of dollars for other sanctioned North Korean banks, including Korea Daesong Bank, Koryo Commercial Bank, and the Foreign Trade Bank. These measures block any property linked to the designated parties under US control and forbid American individuals or entities from engaging in transactions with them. It remains unclear if the sanctioned individuals or companies hold assets within the US.

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