The US Treasury has sanctioned eight North Korean nationals and two companies accused of helping Pyongyang launder funds from crypto theft and fraudulent IT work to support its nuclear weapons programme.

The Office of Foreign Assets Control, which is part of the Treasury, said in a statement today that the North Korean network — spanning China, Russia, and North Korea — involved state bankers, cybercriminals, and IT workers who helped move illicit revenue through international financial channels.

North Korea-linked hackers have stolen more than $3 billion in cryptocurrency over the past three years using advanced malware and social engineering, said the Treasury. The funds were used to generate revenue for Pyongyang’s weapons programmes.

In one of the latest major attacks on the crypto industry, North Korean hackers stole $1.5 billion in Ether from crypto exchange Bybit in February. They used a bogus stock trading simulator, according to a forensic analysis.

David Maxwell, senior fellow at the think tank Foundation for the Defense of Democracies Washington, told DL News in 2023 that North Korea calls crypto its “treasure sword.”

North Korean bankers

Among those sanctioned were Jang Kuk Chol and Ho Jong Son, two bankers who helped manage $5.3 million in cryptocurrency on behalf of the already-sanctioned First Credit Bank. Treasury said some of these funds were linked to a North Korean ransomware actor that previously targeted US victims.

The Treasury also sanctioned the Korea Mangyongdae Computer Technology Company and its president U Yong Su, accusing them of operating IT-worker delegations in the Chinese cities of Shenyang and Dandong.

According to the department, these workers used false or stolen identities to obtain freelance contracts abroad and send the proceeds back to North Korea.

The Treasury said some of these IT workers also collaborated with foreign freelancers and split project revenue, further concealing the origin of their earnings.

“By generating revenue for Pyongyang’s weapons development, these actors directly threaten US and global security,” said John K. Hurley, the Treasury’s Under Secretary for Terrorism and Financial Intelligence.

The crackdown also targeted Ryujong Credit Bank and several North Korean representatives in China and Russia who facilitated millions of dollars in transactions on behalf of other sanctioned DPRK banks, including Korea Daesong Bank, Koryo Commercial Bank, and the Foreign Trade Bank.

The sanctions block all property and interests in property of the designated parties that fall under US jurisdiction and prohibit Americans from engaging in transactions with them.

It is not clear whether any of the designated individuals or entities hold assets in the United States.