Treasury Cracks Down on North Korean Sanctions Evasion Through Crypto Laundering
The post Treasury Cracks Down on North Korean Sanctions Evasion Through Crypto Laundering appeared on BitcoinEthereumNews.com.
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned two individuals and one entity involved in a network laundering millions of dollars in illicit funds for North Korea. Lu Huaying and Zhang Jian, based in the United Arab Emirates (UAE), used a UAE-based front company to facilitate money laundering and cryptocurrency conversion, funneling the proceeds back to Pyongyang. OFAC Imposes Sanctions In its official press release on December 17th, the OFAC stated that North Korea continues to rely on agents and proxies to access the global financial system for illicit activities. The agency added these operations are part of the country’s broader efforts to destabilize international security, now extending to Europe with increasing military ties to Russia. Sim Hyon Sop, a representative of the DPRK’s Korea Kwangson Banking Corp (KKBC) based in the People’s Republic of China (PRC), is said to be a key figure in these activities. Operating as an agent for North Korean financial institutions, Sim is accused of orchestrating money laundering schemes, establishing shell companies, and managing bank accounts to move illicit funds. The OFAC previously designated Sim and KKBC under Executive Order 13382, targeting entities that support WMD proliferation. Sim’s operations primarily involve digital assets to funnel money back to North Korea’s missile programs. Since 2022, Huaying has been allegedly involved in laundering millions of dollars of illicit funds derived from DPRK activities by converting cryptocurrency into fiat currency. Between 2022 and September 2023, the accused used various methods, including money mules, to facilitate these transactions. Meanwhile, Jian also helped facilitate the exchange of fiat currency and acted as a courier for Sim. OFAC is designating both Huaying and Zhang Jian, along with Green Alpine Trading, LLC, a UAE-based front company involved in the network, for their roles in supporting Sim’s…
Filed under: News - @ December 22, 2024 5:16 pm