The U.S. Department of the Treasury announced that its Office of Foreign Assets Control (OFAC) and the government of the United Arab Emirates jointly uncovered a North Korean money laundering network. The case uses cryptocurrency and involves two Chinese nationals and a shell company based in the United Arab Emirates. It is worth noting that the United Arab Emirates has always been open in terms of cryptocurrency regulation, and many exchanges are registered here, but it also harbors many financial crime problems, just like Hong Kong and Singapore in traditional finance.

(Virtual assets are exempted from VAT, and the UAE attracts crypto companies)

Notorious North Korean bank representative leads money laundering network in UAE

According to the announcement, the money laundering network was planned by Sim Hyon Sop, a representative of North Korea’s Korea Kwangseon Bank (KKBC) based in China, who has long been on the sanctions list. In terms of execution, two Chinese citizens stationed in the United Arab Emirates, Lu Huaying and Zhang Jian, provided money laundering and cryptocurrency redemption services through a shell company based in the United Arab Emirates, Green Alpine Trading, LLC, and transferred illegal proceeds back to Pyongyang. Financing the North Korean regime.

(Don’t look at the fraud group! A glimpse of Monero, coin mixers, cross-chain and other blockchain money laundering techniques from the 100 million yuan fraud case)

The U.S. Treasury Department noted that North Korea continues to use agents and intermediaries to gain access to the international financial system to conduct illegal financial activities. These include fake IT (information technology) jobs, cryptocurrency theft and money laundering to support its weapons of mass destruction and ballistic missile programs that violate international law. These illegal activities contribute to North Korea's destabilizing regional security and extend to Europe as Pyongyang strengthens military cooperation with Russia.

Bradley T. Smith, acting undersecretary of the U.S. Department of the Treasury, said: “North Korea continues to use sophisticated criminal means to fund its weapons of mass destruction and ballistic missile programs, including the misuse of cryptocurrency. The Treasury Department remains committed to disrupting the North Korean regime’s money laundering networks. "The United States will work with the UAE and other partners to target these financial networks that facilitate the Kim regime's destabilizing activities." It can be speculated that the acting deputy secretary of the US Treasury also understands that cryptocurrencies are neutral tools and are not inherently evil. technology.

Convert North Korean dirty money into millions of dollars

Since early 2022, Lu Huaying, a Chinese citizen in the UAE, was instructed by Shim Hyun-seop to cash in North Korea’s illegally earned cryptocurrency into fiat cash. Between early 2022 and September 2023, Noh laundered millions of dollars through cryptocurrency redemptions and the delivery of funds that were then used to provide products and services used by North Korea or its agents.

(South Korean country investigation: The theft of 340,000 ETH from Upbit exchange is related to North Korean hackers)

In addition, from the end of 2022 to the beginning of 2023, Zhang Jian, a Chinese citizen in the United Arab Emirates, also assisted Shen Xianxie in conducting legal currency exchange transactions. In addition, Zhang Jian himself acted as a fund transporter. Green Alpine Trading, LLC, a shell company located in the United Arab Emirates, is also an important part of the money laundering network. Both Chinese citizens and the shell company have also been added to the U.S. sanctions list.

 

This article The U.S. Department of the Treasury uncovered a North Korean cryptocurrency money laundering network that used Chinese citizens to exchange black money for cash in the United Arab Emirates first appeared on Chain News ABMedia.