Key Highlights:
- The U.S. Treasury has taken action against a North Korean money laundering network that utilized cryptocurrency to convert illicit funds into cash for the regime.
- Authorities have sanctioned a company based in the UAE and two Chinese individuals connected to these operations.
The U.S. Department of Treasury announced on Tuesday that it has successfully dismantled a North Korean money laundering network that was using cryptocurrency to launder millions for the reclusive nation, which is notorious for its criminal activities in the crypto space.
A company called Green Alpine Trading, LLC, based in the UAE, was involved in converting crypto assets into cash for North Korea, as detailed in a press release from the Office of Foreign Assets Control (OFAC). The U.S. government has blacklisted this company and two Chinese nationals who have been implicated in this operation since 2022.
The UAE was instrumental in the crackdown, although the current status of the two newly sanctioned Chinese individuals, Lu Huaying and Zhang Jian, remains unclear. They were reportedly collaborating with North Korean agent Sim Hyon Sop, per the press release.
Notably, North Korea has been identified as one of the most aggressive state actors targeting the crypto industry, allegedly stealing billions of dollars worth of cryptocurrencies to finance its nuclear weapons program. However, to utilize digital currencies effectively, these funds must be exchanged for fiat currency.
Green Alpine Trading's role may have been small in this broader operation, as the Treasury press release did not specify the exact amounts laundered, stating only that it stemmed from "illicit revenue generation schemes."
