The Office of Foreign Assets Control (OFAC), a branch of the US Department of the Treasury, has taken action against three crypto traders for their alleged involvement in assisting North Korean hacker group, Lazarus, to convert crypto assets.
Wu Huihui, an over-the-counter (OTC) trader, was accused of helping the hackers convert stolen crypto assets into fiat currency.
Similarly, Hong Kong trader, Cheng Hung Man, was penalized for reportedly using a network of shell companies to transfer fiat currencies.
Enabling individuals from the Democratic People’s Republic of Korea (DPRK) to evade restrictions imposed to combat illegal funding.
OFAC has claimed that Man collaborated with other OTC traders to convert digital assets stolen by Lazarus hackers into fiat currency for further use by the DPRK government.
Sim Hyon Sop, an employee of the Korea Kwangson Banking company, was also blacklisted for allegedly setting up a network of shell companies and bank accounts in China that could be used to interact with North Korea.
Lazarus is a notorious hacking group known for carrying out large-scale hacks, including the theft of $625 million in assets during an attack on the Ronin Network Ethereum sidechain.
The FBI has confirmed that the group was also involved in the Harmony bridge hack, which took place in the middle of 2022.
American authorities suspect that the funds stolen by the hackers are being used to finance the development of nuclear weapons and ballistic missiles in North Korea.