U.S. Sanctions North Korean Bankers and Firms Tied to Crypto Laundering

Core Points - The U.S. Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on eight individuals and two entities in North Korea for laundering proceeds from cyber activities and IT worker schemes [1] - The sanctions are linked to North Korea's weapons programs and highlight the evasion of sanctions through cyber theft and IT contracting [2] - Over $3 billion has been stolen in the past three years, primarily in cryptocurrency, which is used to fund North Korea's nuclear weapons program [5] Group 1: Designated Individuals and Entities - North Korean bankers Jang Kuk Chol and Ho Jong Son were designated for managing $5.3 million in cryptocurrency on behalf of First Credit Bank [3] - Korea Mangyongdae Computer Technology Company was designated for operating IT worker delegations in China that utilized proxies to move funds [3] - Ryujong Credit Bank was designated for providing financial services that facilitated sanctions avoidance between China and North Korea [4] Group 2: Financial Channels and Risks - The Treasury's release indicates that the designated parties were involved in transferring funds in U.S. dollars, Chinese yuan, and euros, raising compliance risks for exchanges and financial institutions [4] - The sanctions block property and interests of designated parties within the U.S. or controlled by U.S. persons, including entities owned 50% or more by blocked individuals [6] - The Treasury aims to cut off North Korea's illicit revenue streams by targeting facilitators and enablers of these schemes [6]