WASHINGTON — On Tuesday, the United States imposed sanctions on a group of bankers, financial institutions and others accused of money laundering from cybercrime schemes — the money, according to the Treasury Department, helps pay for North Korea's expenses 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, the Treasury Department's Office of Foreign Assets Control said, noting that the amount is unmatched by any other foreign actor. An international report documented the scale of the problem in 138-page report released last month.
“North Korea’s state-sponsored hackers are stealing and laundering money to fund the regime’s nuclear weapons program,” John C. Hurley, Under Secretary of the Treasury for Counterterrorism and Financial Intelligence, said in a statement.
The agency said North Korea relies on a network of banking representatives, financial institutions and front companies in North Korea, China, Russia and other countries to launder funds from IT fraud, cryptocurrency theft and sanctions evasion.
In 2022, the department warned U.S. firms against hiring highly skilled North Koreans who hide their identities to gain access to financial networks, often posing as remote IT workers.
Tuesday's new measures targeted eight people and two firms, including North Korean bankers Chan Kuk-chul and Ho Jong-song. They are accused of helping manage funds, including $5.3 million in cryptocurrency, on behalf of the sanctioned First Credit Bank.
