US Treasury Sanctions Web of North Korean Bankers Tied to Global Crypto Crime Operation
The U.S. Treasury Department imposed sanctions on eight North Korean bankers based in China and Russia, two North Korean companies, and 53 crypto wallet addresses associated with laundering funds for North Korea's weapons programs. These funds, tied to stolen cryptocurrency from ransomware attacks and scams, were traced to North Korean operatives who have stolen nearly $3 billion globally over two years. The blacklisted wallets contained USDT, a stablecoin. Treasury officials stressed these actions threaten U.S. and global security and emphasized efforts to dismantle the networks enabling North Korea’s illicit activities. Underground Chinese banking networks play a key role in laundering the stolen crypto. Recently, the U.S. Department of Justice seized $14 billion linked to similar money laundering networks.
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Sanctions Target North Korean Bankers Laundering Crypto
The U.S. Treasury Department announced sanctions on Tuesday targeting expat North Korean bankers accused of laundering stolen cryptocurrency. These individuals are reportedly involved in schemes that finance the pariah state’s weapons programs. The sanctions impacted eight bankers primarily residing in China and Russia, with their activities traced to North Korean ransomware attacks and IT-related crypto scams.
Sanctions Extend to Companies and Wallet Addresses
Additionally, the sanctions targeted two North Korean companies and 53 cryptocurrency wallet addresses associated with the accused. The Treasury Department highlighted that all the blacklisted wallets contain USDT, the stablecoin issued by Tether. According to John Hurley, Under Secretary of the Treasury for Terrorism and Financial Intelligence: “By generating revenue for Pyongyang’s weapons development, these actors directly threaten U.S. and global security.” He emphasized the Treasury's commitment to dismantling these illicit financial networks.
North Korea's Use of International Financial Representatives
The announcement underscored how North Korea utilizes financial representatives abroad to launder stolen funds. These representatives exploit international markets, often using crypto thefts as the primary means to generate revenue. A recent report revealed that in less than two years, North Korean operatives have stolen nearly $3 billion worth of cryptocurrency globally.
Recent High-Profile Crypto Heists
Earlier this year, North Korean hackers allegedly executed a notable heist, stealing $1.4 billion worth of ETH and related tokens in a single attack on the crypto exchange Bybit. Blockchain security experts have identified underground Chinese banking networks as key facilitators in laundering these stolen funds. These networks reportedly utilize elaborate, covert methods to process the stolen cryptocurrency.
U.S. Justice Department's Countermeasures
Last month, the Department of Justice (DOJ) took significant action by seizing $14 billion linked to a Cambodian crypto scamming operation. According to experts, this operation is closely tied to the same Chinese underground money laundering networks. This marked the largest asset seizure in DOJ history and signaled a broader effort by the U.S. government to systematically dismantle these interconnected global networks bolstering crypto crimes.