US sanctions North Korean bankers accused of laundering stolen cryptocurrency

Audio By Carbonatix

WASHINGTON (AP) — The United States on Tuesday imposed sanctions on a group of bankers, financial institutions and others accused of laundering money from cyber crime schemes — money the Treasury Department says helps pay for North Korea's nuclear weapons program.

Over the past three years, North Korean malware and social engineering schemes have diverted more than $3 billion, mostly in digital assets, Treasury’s Office of Foreign Assets Control said, noting the sum is unmatched by any other foreign actor. An international report documented the scope of the problem in a 138-page report published last month.

“North Korean state-sponsored hackers steal and launder money to fund the regime’s nuclear weapons program,” said Treasury Under Secretary for Terrorism and Financial Intelligence John K. Hurley in a statement.

The department said North Korea relies on a network of banking representatives, financial institutions, and shell companies in North Korea, China, Russia, and elsewhere to launder funds gained through IT worker fraud, heists of cryptocurrency, and sanctions evasion.

The department in 2022 warned U.S. firms against hiring highly skilled North Koreans who obfuscate their identities to gain access to financial networks, often by posing as remote IT workers.

Tuesday's new measures were directed at eight people and two firms, including North Korean bankers, Jang Kuk Chol and Ho Jong Son. They are accused of helping to manage funds, including $5.3 million in cryptocurrency, on behalf of sanctioned First Credit Bank.