WASHINGTON — The U.S. Department of the Treasury has enacted sanctions against eight individuals and two entities associated with North Korea’s growing cybercrime and illegal IT operations, which officials claim channel billions of dollars into Pyongyang’s weapons development initiatives.
This measure, revealed on Monday by the Treasury’s Office of Foreign Assets Control (OFAC), focuses on North Korean bankers, shell companies, and foreign representatives alleged to be involved in laundering illegal funds through intricate global networks, including cryptocurrency operations.
“North Korean state-sponsored hackers steal and launder money to fund the regime’s nuclear weapons program,” said John K. Hurley, Under Secretary for Terrorism and Financial Intelligence. “By generating revenue for Pyongyang’s weapons development, these actors directly threaten U.S. and global security.”
Cybercrime and IT Worker Operations
According to the Treasury, North Korean hackers have pilfered over $3 billion in the last three years, primarily through cryptocurrency thefts. The regime’s overseas IT personnel, frequently using fake identities, are believed to generate hundreds of millions of dollars each year by working with foreign firms online.
Among those who have been sanctioned are Jang Kuk Chol and Ho Jong Son, North Korean bankers associated with First Credit Bank, which reportedly processed more than $5.3 million in cryptocurrency linked to ransomware incidents and revenue from IT workers.
The Korea Mangyongdae Computer Technology Company (KMCTC) and its president U Yong Su have also faced sanctions for overseeing IT worker activities from offices in China and for disguising the origins of illegal funds through Chinese intermediaries.
Financial Networks in China and Russia
The Treasury has also placed Ryujong Credit Bank on its blacklist, claiming it is involved in facilitating money laundering and financial transactions between North Korea and China.
Additionally, five North Korean individuals — Ho Yong Chol, Han Hong Gil, Jong Sung Hyok, Choe Chun Pom, and Ri Jin Hyok — have been named for acting as overseas agents of sanctioned DPRK financial entities in China and Russia.
Authorities assert that these individuals played a role in transferring millions of dollars across borders to bypass international sanctions, engage in illegal foreign currency dealings, and bolster North Korea’s weapons initiatives.
These sanctions come in response to an October report from the Multilateral Sanctions Monitoring Team, which outlined how North Korea employs cyber operations and overseas IT labor to evade UN restrictions and finance its nuclear and ballistic missile endeavors.
The U.S. government said the new measures demonstrate its commitment to holding accountable those who “benefit the DPRK’s unlawful weapons programs” and reaffirm international efforts to counter Pyongyang’s cyber-enabled threats.
Sanctions Implications
All property and assets belonging to the designated individuals and entities within the United States are now blocked. U.S. persons are prohibited from conducting transactions with them, and any firms engaging with the sanctioned parties risk facing secondary sanctions or enforcement actions.
While the Treasury emphasized that the goal of sanctions is to compel behavioral change rather than punishment, it warned that financial institutions assisting sanctioned actors could face serious consequences.
