US Treasury Sanctions Two UAE Individuals and Company for Crypto Laundering
The US Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned two individuals and a front company in the United Arab Emirates for laundering cryptocurrencies to support North Korea’s weapons programs. The sanctioned parties are Lu Huaying, Zhang Jian, and Green Alpine Trading, LLC, a fake financial services firm used to disguise money laundering activities.
These actions aim to disrupt a network that funneled millions of dollars to fund North Korea's nuclear weapons and ballistic missile programs.
Authorities Crack Down on North Korea Syndicate
The OFAC sanctions followed an investigation into North Korea’s use of digital assets and cybercrime to evade international sanctions. North Korean hackers have been linked to various crypto thefts, with stolen assets laundered through intermediaries like Lu and Zhang.
The US Treasury collaborated with UAE authorities to uncover this network, reflecting an international effort to counter North Korea’s destabilizing actions. The sanctions align with Executive Order 13382, targeting those involved in the proliferation of weapons of mass destruction.
Lu and Zhang reportedly operated under Sim Hyon Sop, a sanctioned North Korean representative associated with the Korea Kwangson Banking Corporation, accused of financing North Korea’s military agenda. From early 2022 to late 2023, Lu facilitated cashing out digital assets from North Korea’s cyber operations, converting illicit assets into fiat currency.
Implications of the Sanctions
Zhang’s role involved exchanging fiat currency for Sim and acting as a courier to move funds discreetly. This laundering operation enabled North Korea to procure goods and services supporting its weapons development efforts.
Green Alpine Trading, LLC served as a front company registered in the UAE, functioning as an intermediary that concealed connections to North Korea. The firm provided material and financial support to Sim Hyon Sop, facilitating the broader money-laundering scheme.
Under the sanctions, any property or assets belonging to Lu, Zhang, or Green Alpine Trading within the United States are frozen. OFAC prohibits US citizens and businesses from engaging in transactions with these sanctioned parties.