The three were engaged in crypto activities themselves, and the U.S. Treasury Department says they were tied to the networks of DPRK entities laundering stolen crypto or moving illicit funds for that country.
The U.S. Treasury Department’s sanctions watchdog banned three North Korean individuals for supporting the Lazarus Group, a North Korean hacking team known for crypto thefts that U.S. authorities say have been used to support the nation’s weapons program.
Two of the sanctioned individuals, Cheng Hung Man and Wu Huihui, were OTC traders who facilitated crypto transactions for Lazarus, Treasury said, while a third person, Sim Hyon Sop, provided other financial support.
“The DPRK continues to exploit virtual currency and extensive illicit facilitation networks to access the international financial system and generate revenue for the regime,” said Brian Nelson, the Treasury’s undersecretary for terrorism and financial intelligence, in a statement.
The Lazarus Group has been accused of mounting a multibillion-dollar campaign against the crypto world, the proceeds of which are said to fund North Korea’s weapons program. The Treasury says the hacker group is controlled by North Korea’s intelligence organization, the Reconnaissance General Bureau, and it was behind the largest-ever crypto heist when it stole $625 million in digital assets from the Ronin network tied to the Axie Infinity game.