North Korean Banker and Crypto Traders Accused of Money Laundering Scheme by US Officials: Latest Developments and Implications
US officials have accused a North Korean banker and two cryptocurrency traders of involvement in money laundering schemes. Specifically, they have accused North Korean banker, Kim Hyon-hui, of collaborating with others to profit from cryptocurrency exchanges and commit theft. Allegedly, some involved parties conspired to steal American dollars to purchase goods for North Korea. Two American cryptocurrency traders have also been banned in connection with these schemes.
These accusations could have serious implications for North Korea, as it already faces numerous allegations and sanctions from the United States. Prior to this, the US has already imposed restrictions on financial instruments associated with North Korea.
On Monday, American officials announced a ban on two cryptocurrency traders and a North Korean banker for their alleged involvement in money laundering schemes. The individuals were targeted for their supposed complicity in concealing illicit activity.
Officials from the DOJ accused the North Korean banker of engaging in illegal activities in the cryptocurrency market, including money laundering offenses. The DOJ cited the banker’s alleged complicity in these activities as one of the main reasons for levying charges against them.
The DOJ argued that the purpose of these activities was to generate revenue for the regime of Kim Jong-un. This announcement was made by American authorities.
A 39-year-old banker, Sim Hyon-sop, who represented Korea Kwangsan Banking Corporation, has been accused of conspiring with Chinese citizen Wu Huihuang, Hong Kong British national Chang Hung-man, and a person known as “Jamie Chen” to commit embezzlement and theft. According to sources related to the incident, these individuals were planning to steal money from cryptocurrency exchanges for the benefit of North Korea. They had devised a plot to steal US dollars in order to purchase goods for North Korea and evade the sanctions imposed by the Treasury Department, so they could continue their ballistic missile programs.
According to the revelations from North Korea, Hyon has been accused of helping to deceive American citizens’ earnings through the assistance of North Korean Information Technology (IT) teams. Under the guise of false identities of these employees, they tricked the employees of shadow blockchain companies operating in the United States to request transactions in cryptocurrencies such as Tether (USDT) and USD Coin (USDC), which were later sent to North Korea.
The Department of Justice has decided that in cases of alleged money laundering, a SIM card could face up to 20 years in prison for potential complicity. Meanwhile, WU is facing a comparative sentence of at least 5 years in prison for allegedly operating a business of sending money without a license. The former accusation is against the SIM card, while the latter is against WU.
