- The US Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned several crypto wallets allegedly linked to the North Korean government, hosted on the Binance exchange.
- These wallets, containing Bitcoin, Ether, USDT, and USDC, are said to have been used to support North Korea’s weapons of mass destruction (WMD) programs.
In a recent development, the US Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on a series of cryptocurrency wallets reportedly connected to the North Korean government. These wallets, hosted by the cryptocurrency exchange Binance, contained various digital currencies including Bitcoin, Ether, Tether’s USDT, and Circle’s USDC.
The sanctioned wallets were allegedly owned by Sang Man Kim, a 58-year-old North Korean citizen. However, it’s important to note that Binance does not actively control these wallets. They seem to be automatically-generated wallet addresses hosted by the exchange that any user can sign up for. According to blockchain data, there have been no transactions to or from these addresses over the past year.
The OFAC press release stated that North Korea conducts malicious cyber activities and deploys IT workers who fraudulently obtain employment to generate revenue, including in virtual currency. This revenue is used to support the Kim regime and its priorities, such as its unlawful weapons of mass destruction and ballistic missile programs.
Binance has previously faced criticism for allegedly enabling bad actors to evade sanctions. However, the exchange has since implemented stringent policies to remove North Korean actors from its platform. Binance confirmed that it took action against accounts connected to these individuals over a year ago in compliance with lawfully served warrants.
North Korean-linked hackers have been involved in several significant exploits in the digital assets industry. In 2022, hackers associated with the country’s regime reportedly stole approximately $630 million worth of crypto.
The imposition of sanctions on these wallets marks a significant development in the ongoing efforts to regulate the use of cryptocurrencies and prevent their misuse for illicit activities. It also highlights the challenges faced by crypto exchanges in ensuring compliance with international sanctions and regulatory requirements.
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