Co-Founder of Virtual Currency Mixer Sanctioned for Assistance to North Korea

OFAC designated a co-founder of a sanctioned virtual currency mixer that laundered stolen virtual assets for North Korea.

According to OFAC, the sanctioned individual is one of three co-founders of a currency mixer that was designated in 2022 (see previous coverage). OFAC said that the currency mixer was used by a North Korean state-sponsored hacking group to launder over $455 million during a virtual currency heist. OFAC stated that funds from the heist went towards helping North Korea to fund its illicit ballistic missile and nuclear weapons programs. OFAC stated that even after the currency mixer was sanctioned, the designated co-founder failed to take meaningful steps to reduce the currency mixer’s use for illicit purposes.

OFAC designated the co-founder pursuant to EO 13694 ("Blocking the Property of Certain Persons Engaging in Significant Malicious Cyber-Enabled Activities") as amended by EO 13757, for having "materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any activity" in support of the government of North Korea.

Further, OFAC stated that the sanctions designation was conducted in coordination with the DOJ, which indicted the co-founders for conspiracy to commit money laundering, conspiracy to operate an unlicensed money transmitting business, and conspiracy to commit sanctions violations.