The Treasury Department on Tuesday sanctioned eight people and two companies it accused of laundering money obtained from cybercrime and IT worker schemes to fund North Korean government objectives.
According to the department, over the last three years North Korea-linked cybercriminals have stolen over $3 billion, mostly in cryptocurrency. In addition, it said, North Korean IT workers are netting hundreds of millions from schemes by faking their identities. It’s all in service of goals that endanger the security of the world, Treasury said.
The bank, IT company and financial institution personnel that the Office of Foreign Assets Control placed on the sanctions list Tuesday add to an ever-growing list this calendar year of parties the United States associates with North Korean cyber activity.
“North Korean state-sponsored hackers steal and launder money to fund the regime’s nuclear weapons program,” said John Hurley, Treasury undersecretary for terrorism and financial intelligence. “By generating revenue for Pyongyang’s weapons development, these actors directly threaten U.S. and global security.”
The department designated Jang Kuk Chol and Ho Jong Son, two North Korean bankers; Korea Mangyongdae Computer Technology Company, an IT company; U Yong Su, president of that firm; and Ryujong Credit Bank, a North Korea-based financial institution. It also designated five people who work for North Korean financial institutions: Ho Yong Chol, Han Hong Gil, Jong Sung Hyok, Choe Chun Pom and Ri Jin Hyok.
The two bankers stand accused of managing cryptocurrency funds on behalf of a previously designated entity, First Credit Bank. The IT firm allegedly operates IT worker delegations from at least two cities in China. Treasury said Ryujong Credit Bank aids in avoiding sanctions between China and North Korea. The five employees are China or Russia-based North Korean representatives of the financial institutions who have allegedly facilitated illicit transactions.
Last month, a group of countries including the United States and allies in Europe and Asia published its latest report on North Korea’s evasions and violations of United Nations Security Council resolutions, this time focused on Pyongyang’s cyber and IT operations.
“The Democratic People’s Republic of Korea (DPRK or North Korea) is systematically engaged in violations of United Nations Security Council resolutions (UNSCRs) and related evasion activities through its Information Technology (IT) worker deployments and cyber operations, particularly as related to cryptocurrency theft and cryptocurrency laundering activities,” the report states. ”The DPRK’s cyber force is a full-spectrum, national program operating at a sophistication approaching the cyber programs of China and Russia.”
