The US Treasury Department, in partnership with authorities in the United Arab Emirates (UAE), has announced sanctions to block the North Korean cryptocurrency laundering network.
The Treasury’s actions aim to prevent the flow of funds used to support North Korea’s weapons of mass destruction (WMD) and missile programs.
The sanctions target two Chinese nationals, Zhang Jian and Lu Huaying, as well as Green Alpine Trading, a UAE-based company. These parties are accused of converting cryptocurrency into traditional currency and sending the proceeds to the Democratic People’s Republic of Korea (DPRK).
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US citizens are prohibited from conducting transactions with them, and others risk penalties if they engage in financial dealings with these parties. Additionally, the restrictions freeze any US-based assets connected to the targeted individuals and entities.
According to the Treasury, Zhang is accused of participating in similar financial transactions and may have acted as a courier for Sim Hyon Sop, a North Korean financial operative previously sanctioned in April 2023.
Sim, linked to the Korea Kwangson Banking Corporation, faces accusations of money laundering and working with North Korean IT professionals to generate illicit income.
Lu worked on converting cryptocurrency into fiat currency between early 2022 and late 2023. The converted funds were reportedly used to purchase goods and services sent to North Korea or its allies.
Green Alpine Trading is believed to have served as a front for laundering money linked to Sim’s operations. The company’s website has since been taken offline.
Meanwhile, Nigeria recently tackled a different kind of crypto fraudulent scheme. After a large-scale operation led by the EFCC on December 10, 792 were arrested for their roles in "pig butchering" scams. What information did the EFCC gather after the arrests? Read the full story.
