The U.S. Department of the Treasury announced new sanctions today against eight individuals and two North Korean entities. The Office of Foreign Assets Control (OFAC) issued the action this November 4. The U.S. Treasury sanctions against North Korean crypto laundering address IT worker schemes and illicit cyber activity. These funds are used to finance the regime’s ballistic missile and weapons of mass destruction programs.
The designation includes North Korean bankers Jang Kuk Chol and Ho Jong Son. Both managed funds on behalf of First Credit Bank, including $5.3 million in cryptocurrency. The Korea Mangyongdae Computer Technology Company was also sanctioned. This firm operated IT worker delegations in China that used proxies to move funds. Furthermore, Ryujong Credit Bank was designated for facilitating financial services. These services supported sanctions avoidance between China and North Korea.
The Treasury’s action highlights the direct connection between cybercrime and Pyongyang’s weapons programs. North Korea has stolen over $3 billion in the last three years, primarily in crypto assets. The official release also adds new data for screening. This includes cryptocurrency addresses tied to a previously designated bank.
Are sanctions enough to stop Pyongyang’s illicit financing?
John K. Hurley, Under Secretary of the Treasury for Terrorism and Financial Intelligence, served as the spokesperson. Hurley stated that North Korean state-sponsored hackers steal and launder money. These funds finance the regime’s nuclear weapons program. These measures increase compliance risk for cryptocurrency companies. Exchanges, custodians, and wallet providers must take extreme precautions. They must avoid transactions with the cryptocurrency addresses newly added to the sanctions list.
As a result of the U.S. Treasury sanctions against North Korean crypto laundering, all property and interests of the designated parties in the U.S. are blocked. Entities owned 50% or more by these individuals are also blocked. The Treasury warned that financial institutions engaging with the sanctioned parties could face enforcement actions. This measure seeks to cut off the DPRK’s illicit revenue streams.
