• The US Treasury Department has identified three individuals who assisted North Korea’s Lazarus Group in converting stolen crypto into fiat currency.
• These individuals include Wu Huihui, a Chinese OTC Trader, Cheng Hung Man, a Hong Kong-based British national, and Sim Hyon Sop, a North Korean living in China.
• All three have been sanctioned by the Treasury’s Office of Foreign Assets Control (OFAC) for providing material support to the Lazarus Group.
US Treasury Identifies 3 OTC Traders Who Converted Crypto For North Korea
The United States Treasury Department has identified over-the-counter (OTC) cryptocurrency traders who assisted North Korea’s Lazarus Group in converting stolen crypto into fiat currency. These individuals were subsequently sanctioned by the Treasury’s Office of Foreign Assets Control (OFAC).
Wu Huihui Sanctioned By OFAC
Wu Huihui was sanctioned by OFAC for “providing material support to the Lazarus Group”. According to a statement released by the Treasury Department on April 24th, Wu is based in China and converted millions of dollars worth of crypto into fiat currency for North Korean “cyber actors” in multiple transactions this year. Despite government restrictions on cryptocurrency operations in China, OTC transactions are still possible.
Cheng Hung Man & Sim Hyon Sop Sanctioned
Cheng Hung Man is a Hong Kong-based British national who was also sanctioned for providing material support to Wu Huihui’s activities. He allegedly helped Wu access the U.S financial system using front companies to avoid detection. Sim Hyon Sop is a North Korean living in China and is a deputy representative of the Korea Kwangson Banking Corporation. He was found guilty of coordinating financial transfers from traders that eventually supported North Korea’s weapons programs and ballistic missile development efforts.
The Role Of OTC Traders In Cryptocurrency
OTC traders play an important role in facilitating cryptocurrency transactions since exchanges are not allowed or restricted within certain countries or jurisdictions due to their lack of regulation and compliance standards with local laws or regulations. This makes them attractive targets for criminals looking to move funds without being detected under normal banking channels.
Conclusion
In conclusion, it is clear that sanctions can be used against criminal networks attempting to use cryptocurrencies as an avenue for money laundering activities or other illicit activity such as funding weapons programs or ballistic missile development efforts sponsored by nation states like North Korea’s Kim Jong Un regime.. By identifying and sanctioning these individuals involved with these activities, it serves as an effective deterrent against future attempts at engaging in similar behavior while protecting innocent victims from becoming victims of cyber crime internationally