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U.S. Sanctions 3 North Koreans for Supporting Hacking Group Known for Crypto Thefts

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.

Updated Apr 24, 2023, 5:45 p.m. Published Apr 24, 2023, 2:33 p.m.

U.S. Treasury Department in Washington, D.C. (Jesse Hamilton/CoinDesk)

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 over-the-counter (OTC) traders who facilitated crypto transactions for Lazarus, the agency said, while a third person, Sim Hyon Sop, provided other financial support. The Treasury investigation identified several bitcoin addresses associated with Wu, while tying an ether, arbitrum and Binance chain address to Sim.

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“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 department's undersecretary for terrorism and financial intelligence, in a statement, referring to the official name of North Korea.

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.

The U.S. Department of Justice later charged Sim with conspiracy for his work with the OTC traders.

UPDATE (April 24, 2023, 14:40 UTC): Adds names and allegations.

UPDATE (April 24, 2023, 15:00 UTC): Adds comments from a Treasury Department official.

UPDATE (April 24, 2023, 15:28 UTC): Adds detail on digital asset addresses.

UPDATE (April 24, 2023, 17:45 UTC): Adds DOJ charge.

Regulations Sanctions OFAC Lazarus group U.S. Treasury Department North Korea

Nikhilesh De

Nikhilesh De is CoinDesk's managing editor for global policy and regulation, covering regulators, lawmakers and institutions. When he's not reporting on digital assets and policy, he can be found admiring Amtrak or building LEGO trains. He owns < $50 in BTC and < $20 in ETH. He was named the Association of Cryptocurrency Journalists and Researchers' Journalist of the Year in 2020.

Jesse Hamilton

Jesse Hamilton is CoinDesk's deputy managing editor on the Global Policy and Regulation team, based in Washington, D.C. Before joining CoinDesk in 2022, he worked for more than a decade covering Wall Street regulation at Bloomberg News and Businessweek, writing about the early whisperings among federal agencies trying to decide what to do about crypto. He’s won several national honors in his reporting career, including from his time as a war correspondent in Iraq and as a police reporter for newspapers. Jesse is a graduate of Western Washington University, where he studied journalism and history. He has no crypto holdings.