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U.S. Treasury Sanctions North Korean-Owned Binance Wallets; Says Entities Used Funds to Support WMD Programs
The Binance-hosted wallets received more than $2 million worth of various cryptocurrencies that were then sent on to North Korean entities, OFAC alleged
U.S. officials on Tuesday sanctioned a swath of crypto-holding wallets with alleged ties to the North Korean government, according to a statement from the Treasury’s Office of Foreign Assets Control (OFAC).
The blacklisted wallets – which contained bitcoin, ether, Tether’s USDT and Circle’s USDC – belonged to an individual named Sang Man Kim, a 58-year-old North Korean citizen, OFAC alleged. The wallets were hosted by crypto exchange Binance.
STORY CONTINUES BELOW
That’s not to say Binance actively controlled the wallets – they appear to be automatically-generated wallet addresses hosted by the exchange that any user can sign up for. There have been no transactions to or from these addresses over the past year, according to blockchain data.
“The DPRK conducts malicious cyber activities and deploys information technology (IT) workers who fraudulently obtain employment to generate revenue, including in virtual currency, to support the Kim regime and its priorities, such as its unlawful weapons of mass destruction and ballistic missile programs,” the OFAC press release said.
Binance had previously come under fire for allegedly facilitating bad actors’ efforts to circumvent sanctions. The exchange has since implemented stringent policies to purge North Korean actors from its platform, Binance Financial Crime Compliance Head Tigran Gambaryan told CoinDesk in April.
“We can confirm that Binance took action against accounts connected to these individuals over a year ago in compliance with lawfully served warrants,“ a spokesperson for Binance said in an email to CoinDesk. "Binance has a policy of cooperation and compliance with all lawful information requests and legal inquiries from government, local regulatory, and law enforcement authorities pertaining to investigations, prosecutions, and forfeiture actions.”
North Korean-linked hackers have executed a number of sizable exploits in the digital assets industry. In 2022, hackers with ties to that country’s regime plundered roughly $630 million worth of crypto, Reuters reported.
UPDATE (May 24, 09:11 UTC): Adds comment from Binance spokesperson in penultimate paragraph.
Elizabeth Napolitano
Elizabeth Napolitano was a data journalist at CoinDesk, where she reported on topics such as decentralized finance, centralized cryptocurrency exchanges, altcoins, and Web3. She has covered technology and business for NBC News and CBS News. In 2022, she received an ACP national award for breaking news reporting.
Amitoj Singh
Amitoj Singh is a CoinDesk reporter focusing on regulation and the politics shaping the future of finance. He also presents shows for CoinDesk TV on occasion. He has previously contributed to various news organizations such as CNN, Al Jazeera, Business Insider and SBS Australia. Previously, he was Principal Anchor and News Editor at NDTV (New Delhi Television Ltd.), the go-to news network for Indians globally. Amitoj owns a marginal amount of Bitcoin and Ether below CoinDesk's disclosure threshold of $1,000.
Nikhilesh De
Nikhilesh De is CoinDesk's managing editor for global policy and regulation, covering regulators, lawmakers and institutions. He owns < $50 in BTC and < $20 in ETH. He won a Gerald Loeb award in the beat reporting category as part of CoinDesk's blockbuster FTX coverage in 2023, and was named the Association of Cryptocurrency Journalists and Researchers' Journalist of the Year in 2020.
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