U.S. Treasury Sanctions North Korean Entities for Crypto Money Laundering

The U.S. Treasury's Office of Foreign Assets Control (OFAC) announced sanctions on November 4, 2025, targeting eight individuals and two entities in North Korea for their involvement in laundering proceeds from cyber activities and information technology worker schemes. These sanctions aim to disrupt channels that move stolen digital assets and contractor income through dollar rails, raising compliance risks for cryptocurrency exchanges, brokers, custodians, and wallet providers that may handle such funds.

Over $3 billion has been stolen in the past three years, primarily in cryptocurrency, with the activity linked to North Korea's weapons of mass destruction and ballistic missile programs. Specific designations include bankers Jang Kuk Chol and Ho Jong Son, who managed $5.3 million in cryptocurrency on behalf of First Credit Bank. Other entities, such as Korea Mangyongdae Computer Technology Company and Ryujong Credit Bank, were sanctioned for operating IT worker delegations and facilitating sanctions evasion through remittances and money laundering.

John K. Hurley, Under Secretary of the Treasury for Terrorism and Financial Intelligence, emphasized, "North Korean state-sponsored hackers steal and launder money to fund the regime’s nuclear weapons program. By generating revenue for Pyongyang’s weapons development, these actors directly threaten U.S. and global security." The sanctions block property and interests in the U.S., prohibiting transactions unless authorized, and warn that financial institutions engaging with designated parties may face enforcement actions.