U.S. imposes sanctions on cryptocurrency network to cut off funding for North Korea's nuclear program

The U.S. Treasury Department has announced sanctions against eight North Korean nationals and two financial entities, accusing them of laundering more than $3 billion in stolen cryptocurrency to support Pyongyang’s nuclear ambitions, according to an

. The sanctions, revealed on November 4, are aimed at bankers, front companies, and cybercriminal groups that have used digital currencies to evade global restrictions, as reported by a . Treasury officials noted that North Korean government-backed hackers have used malware, social engineering tactics, and AI-powered tools to steal funds, with $5.3 million directly traced to blacklisted organizations such as First Credit Bank and Ryujong Credit Bank, CoinDesk stated.

This action follows a 138-page document outlining North Korea’s systematic use of intermediaries in China, Russia, and other countries to mask illegal money flows, according to the AP. Treasury Under Secretary John K. Hurley stressed that the regime’s cyber operations “steal and launder money to fund the nuclear weapons program,” a method that has surpassed other countries in both scale and complexity, CoinDesk reported. Among those targeted are bankers Jang Kuk Chol and Ho Jong Son, who allegedly managed crypto transactions for the sanctioned First Credit Bank, which has been connected to ransomware incidents and sanctions evasion, CoinDesk reported.

The Treasury also blacklisted Korea Mangyongdae Computer Technology Company (KMCTC), which runs IT worker teams in China, for its role in laundering cryptocurrency through Chinese nationals acting as financial stand-ins, CoinDesk reported. KMCTC’s leader, U Yong Su, is among those sanctioned for helping the regime exploit the global financial system. The department cautioned that North Korean hackers are increasingly turning to AI to automate cyberattacks, including phishing and ransomware, to infiltrate crypto exchanges and companies, CoinDesk added.

These sanctions are part of a wider U.S. effort to cut off North Korea’s funding sources as nuclear talks remain stalled. Last month, blockchain analytics company Elliptic revealed that North Korean hackers stole $2 billion in cryptocurrency in 2025 alone, underscoring the regime’s growing dependence on digital assets. The Treasury’s measures are intended to “sever illicit revenue streams” by punishing those who do business with sanctioned groups, a strategy meant to discourage involvement in North Korea’s cybercrime networks, according to

.

However, obstacles persist. China and Russia, North Korea’s main allies, have repeatedly resisted tougher sanctions, instead calling for relaxed measures to encourage renewed talks, an

said. The U.S. has also pushed for U.N. sanctions on seven vessels accused of smuggling North Korean coal and iron ore, but agreement in the Security Council remains out of reach.

The new sanctions highlight the Treasury’s emphasis on targeting financial networks over diplomatic engagement, a shift made clear by a 2022 warning to U.S. companies about hiring North Korean IT workers posing as remote staff, the AP noted. With North Korea’s cyber operations expected to ramp up, the U.S. has indicated plans to intensify its response, focusing not just on the perpetrators but also on the international systems that enable their activities.