Running up against limited experience and resources for monitoring potentially illegal use of digital assets, United States authorities delegate sanctions monitoring to cryptocurrency exchanges and industry players. But do current practices do more harm than good? Who will watch the watchlist? Within the U.S. Treasury, the Office of Foreign Asset Control (OFAC) is responsible for sanctioning individuals and entities the country considers threats to national security. Earlier this month, OFAC added two Chinese nationals accused of laundering money for North Korea’s infamous Lazarus Group. Notably, OFAC’s designation included crypto addresses for these individuals, a measure OFAC first introduced near the …

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two Chinese nationals accused of laundering cryptocurrency that was stolen in a 2018 crypto exchange hack. At the same time, the Department of Justice announced an indictment for money laundering against the same two individuals. Their activity is linked to Lazarus Group, a hacking group allegedly connected to the North Korean government. OFAC accuses Yinyin Tian and Juiadong Li of assisting “a malicious cyber-enabled activity.” Secretary Steven Mnuchin gave the following statement: “The North Korean regime has continued its widespread campaign of extensive cyber-attacks on financial institutions …

North Korea’s internet use saw a 300% surge over the past three years, as the country’s regime has continued to rely on cryptocurrencies for various activities. Exploitation of crypto and blockchain technology is among the primary tactics for the country to generate revenue as well as transfer and use illicitly obtained funds, a new study says. Titled “How North Korea Revolutionized the Internet as a Tool for Rogue Regimes,” the study was released on Feb. 9 by Insikt Group, an intelligence arm of United States-based cybersecurity firm Recorded Future. The report analyzed North Korean senior leadership’s internet activity between Jan. …

Ethereum developer Virgil Griffith entered a plea of not guilty Thursday afternoon in a Southern District of New York courthouse. Griffith is charged with conspiring to violate the International Emergency Economic Powers Act after traveling to North Korea (DRPK) in April 2019 to attend a cryptocurrency conference. If convicted, Griffth, who once called himself a “disruptive technologist” whose aim was to “make the Internet a better and more interesting place,” could face up to 20 years in prison. He traveled up from Alabama to attend the arraignment and appeared composed throughout, answering with a firm “Innocent” when Judge Castel asked …

The United Nations has warned that attending a North Korean cryptocurrency conference in February is likely to constitute a sanctions violation, according to a report by Reuters on Jan. 15. The report follows last week’s indictment of Ethereum Foundation researcher Virgil Griffith on charges of conspiracy to violate the International Emergency Economic Powers Act. Griffith traveled to North Korea for its first blockchain and cryptocurrency conference in April last year. While there, he and other conference attendees allegedly discussed cryptocurrencies and blockchain technologies. The United States government contends that Griffith’s presence could have aided North Korea in skirting international sanctions. …

The United States District Court for the Southern District of New York has filed an indictment against Ethereum Foundation researcher Virgil Griffith on Jan. 7. According to a court filing on Jan. 7, a federal grand jury charged Griffith with conspiracy to violate the International Emergency Economic Powers Act. The act was introduced in 1977 and is a U.S. federal law authorizing the president to regulate international commerce in case of a national emergency coming from outside the country. Griffith is accused of knowingly and willfully having conspired to violate the measures taken against the Democratic People’s Republic of Korea …

Iran’s President has proposed to create a Muslim cryptocurrency as one of a number of means to confront the economic dominance of the United States. Speaking at an Islamic conference in Malaysia on Dec. 19, Iranian President Hassan Rouhani called Muslim nations to strengthen financial and trade cooperation and to cut their reliance on U.S. dollar, according to a report by The Associated Press (AP). New Muslim cryptocurrency to confront “U.S. economic hegemony” As Rouhani argued that U.S. economic sanctions are the “main tools of domineering hegemony and bullying” of other nations. Rouhani put forward the establishment of a special …

Today United States prosecutors announced the arrest of Virgil Griffith, who allegedly traveled to the Democratic People’s Republic of Korea (DPRK) to deliver a presentation on how to use cryptocurrencies and blockchain technology to circumvent sanctions. According to the November 29 announcement, the 36-year-old Griffith was arrested at the Los Angeles International Airport, and will be charged with conspiring to violate the International Emergency Economic Powers Act (IEEPA). The charges carry a maximum term of 20 years in prison. U.S. Attorney Geoffrey S. Berman stated: “As alleged, Virgil Griffith provided highly technical information to North Korea, knowing that this information …

The United Nations Security Council's Sanctions Committee on North Korea has accused the country of using a Hong Kong-based blockchain firm as a front to launder money. As South Korean newspaper Chosun Ilbo reported on Nov. 6, the committee conducted an investigation into the various strategies allegedly employed by the North to evade sanctions using cryptocurrencies and other means. The Committee’s allegations The Committee alleges that “Marine China” — a blockchain-focused shipping and logistics firm registered in Hong Kong — was created by North Korean actors; its owner and sole investor is purportedly an individual named Julian Kim, who also …

It seems that a movement to create a national cryptocurrency is gaining momentum in Asia. Following China, the North Korean authorities announced their readiness to issue digital money and even indicated the availability of all required resources — both technical and human — to implement this task. Will the government of the most isolated country in the world go further than its Asian neighbor, or is this just another attempt to scare the United States? Among the reasons for issuing a North Korean digital coin, experts name the circumvention of Western sanctions, money laundering, speculation and even the manufacturing of …

The United States Treasury Department announced further sanctions against three North Korean state-sponsored hacker groups, responsible for “North Korea’s malicious cyber activity on critical infrastructure.” Continue to enforce existing U.S. and U.N. sanctions against North Korea On Sept. 13, the U.S. Department of Treasury announced sanctions against North Korean hacking groups, more specifically the renowned Lazarus group, and two lesser-known entities, Bluenoroff and Andariel. Sigal Mandelker, Treasury Under Secretary for Terrorism and Financial Intelligence said: “Treasury is taking action against North Korean hacking groups that have been perpetrating cyber attacks to support illicit weapon and missile programs. [...] We will …

The United Nations is investigating 35 North Korean cyberattacks across 17 countries, according to a report published Aug. 13 by the AP. This follows last week’s leaked summary of the report, stating that $2 billion had been hacked by the nation thus far to fund weapons programs. The majority of incidents being probed were carried out via one of three main attack vectors. South Korea bore the brunt of most attacks South Korea is by far the favorite target, suffering 10 of the attacks detailed in the report, with India next, being victim of three attacks. However, incidents being investigated …