US Charges North Korean Foreign Trade Bank Rep in 2 Crypto Laundering Conspiracies
Sim Hyon Sop, a representative of a North Korean foreign trade bank, was charged in U.S. District Court for the District of Columbia in two federal indictments for his role in two different money laundering conspiracies meant to raise funds for North Korea via cryptocurrency, in violation of U.S. sanctions, DOJ announced. Sim allegedly conspired with over-the-counter cryptocurrency traders to "use stolen funds to buy goods for North Korea and for conspiring with North Korean IT workers to generate revenue through illegal employment at blockchain development companies" in the U.S., DOJ said.
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In one conspiracy, Sim and three OTC traders allegedly laundered stolen funds from virtual currency exchanges to pay for products on behalf of the North Korean state. In the second conspiracy, Sim and certain North Korean IT workers allegedly laundered proceeds of illegal IT development work. Sim, Chinese national Wu Huihu, Hong Kong British national Cheng Hung Man and the owner of the username live:jammychen0150 allegedly conspired to launder cryptocurrency and buy goods via Hong Kong-based front companies in violation of U.S. sanctions, DOJ said. Sim, Wu and Cheng were sanctioned by the Treasury Department earlier this week (see 2304240024).
Assistant Attorney General Kenneth Polite said the "charges announced today respond to innovative attempts by North Korean operatives to evade sanctions by exploiting the technological features of virtual assets to facilitate payments and profits, and targeting virtual currency companies for theft. We will continue to work to disrupt and deter North Korean actors and those who aid them by following the money on the blockchain and shining a light on their conduct.”