U.S. Sanctions North Korean Entities Over Crypto Laundering Linked to Weapons Programs
The U.S. Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on eight individuals and two North Korean entities tied to cryptocurrency laundering. The move targets networks accused of funneling stolen digital assets and illicit IT contractor earnings to fund the regime's weapons programs.
First Credit Bank, managed by designated bankers Jang Kuk Chol and Ho Jong Son, allegedly processed $5.3 million in cryptocurrency. Korea Mangyongdae Computer Technology Company was also named in the sanctions for its role in cyber-enabled revenue generation schemes.
The action follows a multilateral report detailing North Korea's use of cyber theft and IT worker fraud to evade sanctions. Treasury officials emphasized the compliance risks for exchanges and wallet providers that might interact with these tainted funds.
