Michaela Alvez
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on two individuals and a company accused of laundering millions of dollars in illicit funds for operatives in North Korea.
On Tuesday, the U.S. Treasury Department revealed that it had dismantled a North Korean money laundering network. Although the exact amount of laundered funds remains undisclosed, the operation was primarily aimed at financing North Korea’s weapons of mass destruction (WMD) and ballistic missile development programs.
The network included Green Alpine Trading, LLC, a front company based in the United Arab Emirates (UAE), along with Chinese nationals Lu Huaying and Zhang Jian. These individuals played key roles in converting cryptocurrency obtained through North Korea’s fraudulent IT operations and cybercriminal activities into cash.
The operation was led by Sim Hyon Sop, a North Korean agent based in China, who utilized digital assets to conceal the illicit origins of the funds. Sim, who had been previously sanctioned by OFAC, managed the operation by using a network of crypto exchanges, money mules, and shell companies to carry out the illicit activities.
According to the OFAC, Lu has been a key figure in converting cryptocurrency into fiat currency through cash-out operations and money mule networks since early 2022. Between 2022 and September 2023, Lu helped launder millions of dollars on behalf of Sim.
Similarly, Zhang played a crucial role in facilitating the exchange of cryptocurrency for fiat currency and occasionally served as a courier for Sim’s operations. Meanwhile, Green Alpine Trading offered both financial and logistical support, helping to facilitate the flow of illicit funds within Sim’s network.
The decentralized and anonymous characteristics of digital assets have made them a vital tool for North Korea in generating revenue. The regime uses cybercrime, fraudulent IT activities, and stolen funds to circumvent international sanctions.
Sim is also linked to North Korea’s Korea Kwangson Banking Corp (KKBC), a state-run organization that is blacklisted by both the U.S. and the United Nations for its role in financing the country’s weapons of mass destruction programs. The Financial Crimes Enforcement Network (FinCEN) has consistently identified individuals like Sim as significant figures in illicit financial operations.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
