U.S. Hits North Korean Bankers with Sanctions Over Crypto Laundering

TLDR

• U.S. sanctions North Korean bankers for laundering cryptocurrency linked to cyberattacks and weapons funding.
• North Korean hackers stole over $2B in 2025, using crypto for cybercrime and military programs.
• Sanctions target Jang Kuk Chol and Ho Jong Son for laundering $5.3M tied to ransomware payments.
• Treasury highlights North Korea’s use of AI tools, malware, and phishing in crypto exchange attacks.
• KMCTC, Ryujong Credit Bank sanctioned for facilitating illicit funds tied to North Korean cybercrime.

The U.S. Treasury Department has imposed new sanctions on several North Korean bankers and institutions. These entities are accused of laundering millions in cryptocurrency proceeds linked to cyberattacks, aiding the regime’s weapons development.

Sanctions Target Key Individuals and Entities

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned eight individuals and two entities. These sanctions are part of ongoing efforts to combat North Korea’s cyber-enabled activities. The Treasury claims that North Korean hackers have stolen over $2 billion worth of cryptocurrency in 2025 alone. A notable portion of these funds is linked to cybercrimes, including ransomware attacks.

OFAC’s sanctions address the use of cryptocurrency by North Korean entities to fund weapons programs. Among the sanctioned individuals are Jang Kuk Chol and Ho Jong Son, two bankers connected to First Credit Bank. The Treasury claims they laundered at least $5.3 million through shell companies, facilitating ransomware payments and transactions linked to North Korean IT workers abroad.

Increasing Use of AI in Cyberattacks

North Korean hackers have expanded their methods by using advanced AI tools, blockchain firm Elliptic reports. These tools automate and scale attacks, enabling greater disruption. The Treasury Department confirmed that North Korean actors employ phishing, malware, and social engineering tactics to breach crypto exchanges and firms.

Two entities, Korea Mangyongdae Computer Technology Company (KMCTC) and Ryujong Credit Bank, were also sanctioned. KMCTC operates IT worker delegations in China, using local intermediaries to hide illicit funds linked to North Korean workers. Ryujong Credit Bank allegedly facilitated international transfers for North Korean groups involved in sanctions evasion.

These sanctions are a critical part of the U.S. strategy to disrupt financial networks supporting North Korea’s military and cyber operations. The Treasury aims to limit the regime’s ability to fund its weapons programs and expand its cyber activities.

The post U.S. Hits North Korean Bankers with Sanctions Over Crypto Laundering appeared first on Blockonomi.