TechFlow reported on December 18 that, according to Cointelegraph, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has sanctioned two Chinese nationals, Lu Huaying and Zhang Jian, as well as UAE-based Green Alpine Trading Company, for allegedly engaging in cryptocurrency conversion and money laundering activities, with funds subsequently transferred to the Democratic People's Republic of Korea (DPRK).
The statement read: "As North Korea continues to fund its weapons of mass destruction and ballistic missile programs through sophisticated criminal schemes—including the use of digital assets—the Treasury will continue to focus on disrupting networks that facilitate financial flows to the North Korean regime."
Lu and Zhang are residents of the UAE. Lu is alleged to have converted cryptocurrency into fiat currency and used it to obtain goods and services destined for North Korea or its agents. The Treasury said he was particularly active between early 2022 and September 2023.
