Coinspeaker US Treasury Sanctions UAE-Based Individuals, Company Over North Korea’s Illicit Crypto Operations
The US Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on two individuals and a front company in the United Arab Emirates (UAE) for their involvement in laundering cryptocurrencies to support North Korea’s weapons programs.
According to an official announcement on Tuesday, the sanctioned parties include Lu Huaying, Zhang Jian, and Green Alpine Trading, LLC, a fake financial services firm established as a camouflage to hide their money laundering practices.
The US government said the actions were taken to disrupt a sophisticated network that funneled millions of dollars to fund the North Korea nuclear weapons and ballistic missile programs.
Authorities Cracks Down on North Korea Syndicate
The OFAC sanctions were the result of an extensive investigation into North Korea’s increasing reliance on digital assets and cybercrime to bypass international sanctions. North Korean hackers have been linked to numerous crypto heists, with the stolen assets often funneled through complex laundering systems involving intermediaries like Lu and Zhang.
The US Treasury worked closely with UAE authorities to uncover the network, marking a coordinated international effort to counter North Korea’s destabilizing activities. The sanctions align with Executive Order 13382, which targets individuals and entities involved in the proliferation of weapons of mass destruction.
The US authorities said that both Lu, Zhang and the company reportedly worked under the direction of Sim Hyon Sop, a sanctioned North Korean representative tied to the Korea Kwangson Banking Corporation, a state-run entity long accused of financing North Korea’s military agenda.
OFAC found that from early 2022 to late 2023 Lu’s major role in the operation involved cashing out digital assets derived from North Korea’s cyber operations. OFAC reported that Lu used crypto cash-outs and money mules to convert illicit digital assets into fiat currency.
During this period, he laundered several million dollars on behalf of Sim Hyon Sop, who remains a key figure in North Korea’s revenue-generation schemes.
Implications of the Sanctions
As for Zhang, his major role was to facilitate the exchange of fiat currency for Sim. He also acted as a courier, moving funds through channels designed to avoid detection.
This coordinated laundering effort allowed North Korea to use the funds to procure goods and services that ultimately supported its weapons development programs.
The entire operation was masked through Green Alpine Trading, LLC, a front company registered in the UAE. The firm served as a critical intermediary, enabling the flow of funds while concealing their connection to North Korea.
According to OFAC, Green Alpine Trading provided material and financial support to Sim Hyon Sop, effectively operating as a camouflage for the larger money-laundering network.
Meanwhile, under the sanctions, any property or assets belonging to Lu, Zhang or Green Alpine Trading, LLC within the United States are now frozen. OFAC warned that US citizens and businesses are strictly prohibited from conducting transactions with the sanctioned parties.
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US Treasury Sanctions UAE-Based Individuals, Company Over North Korea’s Illicit Crypto Operations