OFAC Sanctions Chinese OTC Trader Over Laundering Crypto for North Korea
Main page News, US, China, North Korea, Money Laundering, Cryptocurrency
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April 24, 2023

The Department of the Treasury's Office of Foreign Assets Control (OFAC) has sanctioned three individuals for helping North Korea launder stolen cryptocurrencies.

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In a press release Monday, OFAC said Wu Huihui, a Chinese over-the-counter, was included in the sanction list "for providing material support to the Lazarus Group." Cheng Hung Man was also included in the list "for providing material support to Wu."

The watchdog believes that Wu laundered multiple millions of dollars' worth of crypto for North Korea in 2021. Cheng being at a Hong Kong-based OTC trader helped Wu "remit payment to companies in exchange for virtual currency."

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Besides the two, OFAC also sanctioned Sim Hyon Sop, a North Korean citizen, for acting on behalf of the Korea Kwangson Banking Corp (KKBC), a financial company previously sanctioned for maintaining multiple bank accounts with Bank of Dandong, which acts as a conduit for North Korea to access the US and international financial systems.

The US Department of Justice has also charged the individuals in crypto laundering conspiracies.

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