U.S. Treasury Sanctions North Korea-Linked Crypto Laundering Network

The U.S. Department of the Treasury escalated its crackdown on North Korea’s illicit financial activities, imposing sanctions on eight individuals and two entities tied to cryptocurrency laundering. The targeted network, including Korean firm KMCTC and First Credit Bank, allegedly facilitated the movement of digital assets and fiat to fund Pyongyang’s weapons programs.

Under Secretary for Terrorism and Financial Intelligence John K. Hurley emphasized the role of state-sponsored hackers in stealing and laundering funds. OFAC’s updated Specially Designated Nationals List now includes cryptocurrency addresses linked to the operation, highlighting the regime’s reliance on cross-chain transfers and mixing services to obscure illicit flows.

Traditional money laundering—placement, layering, integration—finds new agility in crypto. Addresses spawn instantly, transactions hop chains cheaply, and unregulated tools like tumblers complicate tracing. Yet the Treasury’s action signals growing scrutiny of blockchain’s role in geopolitical threats.