The post UAE Company Caught in Crypto Laundering Scheme Supporting North Korea’s WMDs appeared first on Coinpedia Fintech News
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions against two people and an associated company who are involved in a complex cryptocurrency money laundering operation tied to Pyongyang. The operation channelled millions of dollars to finance the WMD and ballistic missile regime.
The two persons, including Lu Huaying and Zhang Jian, used Green Alpine Trading, LLC, a company in UAE as an intermediary front. They worked with Sim Hyon Sop, a China-based board of directors of North Korea’s Korea Kwangson Banking Corp (KKBC). Sim managed elaborate money laundering solutions that put into operation money from North Korean IT personnel as well as cyber criminals to the regime’s fund.
A Global Operation
Between February 2022 and September 2023, Lu Huaying was cashing out cryptocurrency received from unlawful operations. Zhang Jian also unbolted the operation to the outside world and repeatedly served as a postman to transfer Sim’s money. These funds were used to buy military-related resources in North Korea.
This operation shows that Pyongyang has been using cryptocurrency more and more to circumvent sanctions and finance activities that destabilize the region. Contrary to recommendations made by its partners around the world, the DPRK has been identified as taking advantage of loopholes within digital financial systems thus posing a threat to worldwide security.
The introduced sanctions measures restrict all the American-associated property of the named persons and companies. They also bar the same from doing business with them especially those in the United States of America.
A Collaborative Effort
Implementations of the sanctions were done together with the UAE to emphasize the role of global cooperation against illicit financing. Bradley T Smith, Acting Under Secretary for Terrorism and Financial Intelligence reiterated Treasury’s focus and determination to counter the financial sources supporting North korea’s unfavourable activities.
As North Korea advances in the use of digital assets for the purpose of exploiting it, the whole world needs to ensure that they check on such actions and prevent such.
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