The US Treasury Department has cracked down on a North Korean cryptocurrency money laundering operation. They’ve sanctioned several individuals and a company involved in the scheme.
Targeting Key Players
The sanctions target two Chinese nationals, Lu Huaying and Zhang Jian, who worked for a network that used a shell company in the UAE to clean dirty money and convert cryptocurrency for North Korea. Lu reportedly cashed out crypto for Sim Hyon Sop, a known leader of the laundering network who is already under US sanctions. Zhang acted as a courier and helped exchange money.
The Shell Game
The UAE-based shell company, Green Alpine Trading, was also sanctioned. This company was used to hide and move funds generated through illicit activities.
North Korea’s Funding Methods
The Treasury Department says North Korea uses various methods to generate illegal income, including fraudulent IT work and stealing digital assets. They then use agents and shell companies to move this money through the international financial system, ultimately funding their weapons programs.
US Response
Acting Under Secretary of the Treasury Bradley Smith stated that the US is committed to disrupting these funding networks. He emphasized the Treasury’s ongoing efforts to counter North Korea’s use of complex financial schemes to support its weapons programs.
