The US Treasury Department has shut down a network in the UAE where North Korea was using cryptocurrencies to launder millions of dollars in money. The isolated regime has been linked to various crypto-related crimes.
Sanctions and Targets
On Tuesday, the US imposed sanctions targeting two individuals and a UAE-based company. These individuals and the company were allegedly responsible for laundering millions of dollars obtained through IT workers and cybercrime on behalf of the North Korean government.
According to the U.S. Treasury Department, sanctioned individuals used a company called Green Alpine Trading LLC to launder North Korean funds and convert cryptocurrency into cash. This front company was used to finance Pyongyang’s operations, including its weapons and missile programs.
Global Cooperation and Crypto Abuse
Previously, such financing was provided through dark web operations and other illicit markets. The U.S. government has emphasized its commitment to dismantling criminal networks that utilize sophisticated schemes to enable North Korea to continue its military advances.
“We remain committed to dismantling criminal networks.” -US Department of the Treasury.
The US Treasury Department’s sanctions also included Chinese citizens Lu Huaying and Zhang Jian, who have been collaborating with Green Alpine Trading since 2022. These sanctions freeze their US assets and prevent Americans from transacting with them.
North Korea is targeting the cryptocurrency industry to finance its nuclear weapons development. Converting crime-related crypto assets into fiat currency is difficult, and companies like Green Alpine make the process easier.
This development is seen as part of the fight against crypto abuse by the US Treasury Department and international partners such as the UAE. The UAE embassy in Washington did not immediately make a statement on the matter.
International cooperation is critical in combating crypto abuse. The joint action of the USA and the UAE aims to cut off North Korea’s financial resources. Eliminating uncertainties in cryptocurrency regulations can enable more effective steps to be taken in the fight against illegal activities.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
