Disassembling a Network
Accordingly, the United States Treasury Department’s Office of Foreign Assets Control (OFAC), working jointly with the United Arab Emirates, has imposed sanctions against two Chinese citizens and UAE-based trading company Green Pine Alpine Trading. The Treasury actions seek to disrupt two North Korean government-backed malware groups who have been accused of virtual currency laundering operations for its WMD and ballistic missile programs.
Lu Huaying and Zhang Jian, citizens of the People’s Republic of China and residents of the UAE, were accused of converting cryptocurrency into fiat currency. The funds were allegedly used to purchase goods and services on behalf of the Democratic People’s Republic of Korea. OFAC alleges that Green Alpine Trading acted as a front company for these illicit activities, processing transactions for Korea Kwangson Banking Corporation, a North Korean entity under them sanctions.
Lu operated between early 2022 and September 2023, while Zhang was suspected of acting as a courier for Sim Hyon Sop, an executive previously sanctioned for running money laundering schemes. These networks are believed to keep DPRK’s financial operations going through international sanctions.
Resourceful Adversaries
Meanwhile, North Korea’s cyber-enabled financial crimes have received heightened global attention. According to a forecast by TRM Labs, groups linked to North Korea stole between $600 million and $700 million in cryptocurrency in 2023 alone. Since 2017, these figures could cumulatively reach as much as $3 billion.
Their modus operandi is complex: from hacking cryptocurrency exchanges to deploying malware and exploiting crypto mixers to mask the origins of funds. These activities are a key part of the DPRK’s strategy for evading international scrutiny and financing state priorities.
A Global Push to Disrupt Networks
This coordinated action between them and UAE is a signal of an increased effort to dismantle financial systems supporting North Korea’s regime. Bradley T. Smith, Acting Under Secretary for Terrorism and Financial Intelligence, underscored that Treasury remains committed to cutting off funding channels for North Korea’s illicit programs.
As DPRK adapts to enforcement mechanisms, international authorities must remain vigilant. The collaboration between nations like them and UAE is a step toward countering the evolving techniques used by North Korea’s resourceful networks. This case underscores the importance of global cooperation in tackling digital asset laundering and the broader threat it poses to international security.
