U.S. Imposes Sanctions on Individuals and Companies Involved in North Korea's Weapons of Mass Destruction

U.S. Treasury Sanctions Two Chinese Officials of North Korean Airline Goryeo Air
Tornado Cash Related to Lazarus Hacking Group Re-Designated for Sanctions

[Asia Economy Reporter Yoo In-ho] The United States has imposed sanctions on individuals and companies involved in cybercrimes aimed at procuring materials and securing funds for North Korea's missile and weapons of mass destruction (WMD) development.

On the 8th (local time), the U.S. Department of the Treasury announced in a press release that the Office of Foreign Assets Control (OFAC) has added two Chinese nationals affiliated with North Korean airline Air Koryo, already sanctioned for involvement in North Korea's missile and weapons development, to its sanctions list.

These individuals are accused of transporting electronic components and other materials from China to North Korea on behalf of North Korea's Rocket Industry Department and Reconnaissance General Bureau.

Their assets within the United States have been frozen, and all direct and indirect transactions with them are prohibited.

The cryptocurrency mixing service provider Tornado Cash, accused of providing services to the North Korea-linked hacking group Lazarus, has been redesignated as a sanctioned entity and added to the list.

The Treasury Department reports that Lazarus used Tornado Cash to launder approximately $455 million in cryptocurrency hacked in March.

The Treasury stated, "This sanction is part of the United States' efforts to curb North Korea's illicit development of weapons of mass destruction and ballistic missiles," and condemned North Korea's recent numerous ballistic missile launches as violations of multiple United Nations Security Council resolutions.

Brian Nelson, Under Secretary for Terrorism and Financial Intelligence, said, "This sanction targets two key points in North Korea's weapons development: one is the increasing illicit activities including cybercrime to secure funds, and the other is the procurement of materials for weapons of mass destruction and missile development."

Meanwhile, on the 8th (local time), the U.S. Department of Defense reaffirmed its position that North Korea is supplying artillery shells to Russia, which is at war with Ukraine, countering North Korea's denial of arms trade with Russia.

Patrick Ryder, spokesperson for the U.S. Department of Defense, said at a briefing that when asked for additional information regarding allegations that North Korea supplied artillery shells to Russia, "We do not have anything new beyond what the National Security Council (NSC) has stated," but added, "The information we have indicates that North Korea is covertly providing a significant number of artillery shells to Russia."

Earlier, the Deputy Director of the Military Foreign Affairs Bureau of North Korea's Ministry of Defense stated in a statement on the 8th (Korean time), "We clearly reiterate that we have never engaged in arms trade with Russia and have no plans to do so in the future," refuting the U.S. claims.

John Kirby, White House NSC Coordinator for Strategic Communications, first disclosed on the 3rd in a briefing that there is information that North Korea disguised a substantial amount of artillery shells as shipments to Middle Eastern or North African countries and supplied them to Russia.