CaliToday (05/11/2025): The United States today unleashed a major sanctions package against a sophisticated North Korean network, targeting eight individuals and two entities accused of acting as the "digital bankers" and launderers for Pyongyang's global cybercrime operations.
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| The U.S. Treasury Department announced sanctions Tuesday against eight individuals and two entities accused of laundering proceeds from North Korean cybercrime and information technology worker fraud schemes. File Photo by Stephen Shaver/UPI |
The U.S. Treasury Department said the network is a key part of a state-run machine that has stolen over $3 billion in the last three years alone. This illicit revenue, generated from advanced malware attacks, social engineering, and fraudulent IT worker schemes, is being funneled directly into the Democratic People's Republic of Korea's (DPRK) unlawful weapons of mass destruction (WMD) and ballistic missile programs.
"North Korean state-sponsored hackers steal and launder money to fund the regime's nuclear weapons program," said John K. Hurley, Under Secretary for Terrorism and Financial Intelligence, in a blunt statement. "By generating revenue for Pyongyang's weapons development, these actors directly threaten U.S. and global security."
Hurley added that the Treasury is "identifying and disrupting the facilitators and enablers behind these schemes to cut off the DPRK's illicit revenue streams."
The Hit List: From Crypto Launderers to IT 'Brokers'
Tuesday's action by the Office of Foreign Assets Control (OFAC) targets the critical infrastructure—both human and corporate—that allows North Korea to convert stolen digital assets into hard currency.
Among the key figures designated are:
The Crypto Bankers: North Korean bankers Jang Kuk Chol and Ho Jong Son. They are accused of helping manage illicit funds, including a cache of $5.3 million in cryptocurrency. A portion of this crypto has been directly linked to ransomware attacks that have previously targeted American victims.
The IT 'Broker': Korea Mangyongdae Computer Technology Co. and its president, U Yong Su. This company allegedly operates fraudulent IT-worker delegations from bases in the Chinese cities of Shenyang and Dandong, funneling wages back to the regime.
The "Laundromat" Bank: Ryujong Credit Bank was also added to the list, accused of laundering foreign-currency earnings and moving funds for other North Korean entities already under heavy international sanctions.
Six other individuals were designated for their roles in facilitating these illicit money transfers. As a result of the sanctions, all U.S.-based property of these individuals is frozen, and all U.S. persons are barred from any transactions with them.
A Threat 'Approaching China and Russia'
This action is part of an escalating U.S. campaign to counter Pyongyang's increasingly sophisticated cyber-theft apparatus. In July, the State Department sanctioned a member of the Andariel hacking group, and the Justice Department has filed criminal charges across 16 states targeting the placement of North Korean IT workers in U.S. companies.
The threat's severity was highlighted in an October report by the 11-country Multilateral Sanctions Monitoring Team. The report described North Korea's cybercrime apparatus as "a full-spectrum, national program operating at a sophistication approaching the cyber programs of China and Russia."
The report concluded that "nearly all the DPRK's malicious cyber activity... is carried out under the supervision, direction and for the benefit of entities sanctioned by the United Nations" for their role in the WMD programs.
Sanctions in Diplomacy's Shadow
These new sanctions land at a delicate geopolitical moment, following President Donald Trump's recent visit to South Korea. A much-anticipated summit with North Korean leader Kim Jong Un failed to materialize during that trip.
With high-level talks stalled, the U.S. appears to be intensifying its "maximum pressure" campaign as a primary tool of statecraft.
However, diplomatic channels remain open. South Korea’s National Intelligence Service (NIS) told lawmakers on Tuesday that a U.S.-DPRK summit could potentially take place after the next round of joint U.S.-South Korean military drills, currently scheduled for March 2026.