Cybercrime

US Treasury accuses Pyongyang of stealing $3bn in digital assets to finance its nuclear weapons programme over three years.

North Korea has denounced the latest United States sanctions targeting cybercrimes that the US says help finance its nuclear weapons programme, accusing Washington of harbouring “wicked” hostility towards Pyongyang and promising unspecified countermeasures.

The statement on Thursday by a North Korean vice foreign minister came two days after the US Department of the Treasury imposed sanctions on eight people and two firms, including North Korean bankers, for allegedly laundering money from cybercrime schemes.

The US Treasury accused North Korea of operating state-sponsored hacking schemes that have stolen more than $3bn in mostly digital assets over the past three years, an amount unmatched by any other foreign actor. The Treasury Department said the illicit funds helped finance the country’s nuclear weapons programme.

The department said North Korea relies on a network of banking representatives, financial institutions and shell companies in North Korea, China, Russia and elsewhere to launder funds obtained through IT worker fraud, cryptocurrency heists and sanctions evasion.

The sanctions were rolled out even as US President Donald Trump continues to express interest in reviving talks with North Korean leader Kim Jong Un. Their nuclear discussions during Trump’s first term collapsed in 2019 amid disagreements over trading relief from US-led sanctions on North Korea for steps to dismantle its nuclear programme.

“Now that the present US administration has clarified its stand to be hostile towards the DPRK to the last, we will also take proper measures to counter it with patience for any length of time,” the North Korean vice minister, Kim Un Chol, said in a statement.

He said US sanctions and pressure tactics will never change the “present strategic situation” between the countries or alter North Korea’s “thinking and viewpoint”.

Kim Jong Un has shunned any form of talks with Washington and Seoul since his fallout with Trump in 2019. He has since made Russia the focus of his foreign policy, sending thousands of soldiers, many of whom have died on the battlefield, and large amounts of military equipment for President Vladimir Putin’s war on Ukraine while pursuing an increasingly assertive strategy aimed at securing a larger role for North Korea in a united front against the US-led West.

In a recent speech, Kim Jong Un urged Washington to drop its demand for the North to surrender its nuclear weapons as a condition for resuming diplomacy. He ignored Trump’s proposal to meet while the US president was in South Korea last week for meetings with world leaders attending the Asia-Pacific Economic Cooperation summit.

Nov. 5 (UPI) — The U.S. Treasury Department announced sanctions against eight individuals and two entities accused of laundering proceeds from North Korean cybercrime and information technology worker fraud schemes that help fund Pyongyang’s weapons programs.

The department’s Office of Foreign Assets Control said Tuesday that North Korea has stolen more than $3 billion over the past three years, using sophisticated techniques such as advanced malware and social engineering to breach financial systems and cryptocurrency platforms.

“North Korean state-sponsored hackers steal and launder money to fund the regime’s nuclear weapons program,” Under Secretary for Terrorism and Financial Intelligence John K. Hurley said in a statement. “By generating revenue for Pyongyang’s weapons development, these actors directly threaten U.S. and global security.”

Hurley added that the Treasury is “identifying and disrupting the facilitators and enablers behind these schemes to cut off the DPRK’s illicit revenue streams.”

The Democratic People’s Republic of Korea is the official name of North Korea.

Among those sanctioned are Jang Kuk Chol and Ho Jong Son, North Korean bankers who allegedly helped manage illicit funds, including $5.3 million in cryptocurrency — some of it linked to ransomware that has previously targeted U.S. victims.

Korea Mangyongdae Computer Technology Co. and its president U Yong Su were also added to the list. The company allegedly operates IT-worker delegations from the Chinese cities of Shenyang and Dandong.

Ryujong Credit Bank, another target, was accused of laundering foreign-currency earnings and moving funds for sanctioned North Korean entities. Six additional individuals were designated for facilitating money transfers.

Under the sanctions, all property and interests in property of the designated individuals and entities within U.S. jurisdiction are blocked, and U.S. persons are generally barred from engaging in transactions with them. Financial institutions dealing with the sanctioned parties may also face enforcement actions.

The move builds on earlier U.S. actions this year against North Korean cyber networks. In July, the State Department sanctioned Song Kum Hyok, a member of the Andariel hacking group, for operating remote IT-worker schemes that funneled wages back to Pyongyang.

The Justice Department also filed criminal charges in 16 states against participants in a campaign that placed North Korean IT workers in U.S. companies.

Tuesday’s OFAC statement cited an October report by the 11-country Multilateral Sanctions Monitoring Team, which described North Korea’s cybercrime apparatus as “a full-spectrum, national program operating at a sophistication approaching the cyber programs of China and Russia.”

The report added that “nearly all the DPRK’s malicious cyber activity, cybercrime, laundering and IT work is carried out under the supervision, direction and for the benefit of entities sanctioned by the United Nations for their role in the DPRK’s unlawful WMD and ballistic missile programs.”

The sanctions follow President Donald Trump‘s recent visit to South Korea, where a much-anticipated meeting with North Korean leader Kim Jong Un failed to materialize.

South Korea’s National Intelligence Service told lawmakers Tuesday that a summit could take place after joint U.S.-South Korean military drills scheduled for March, according to opposition lawmaker Lee Seong-kweun of the People Power Party.