• Binance has announced its collaboration with US law enforcement agencies, seizing $4.4 million worth of crypto assets connected to North Korean entities.
• The targeted entities were the Chinyong Information Technology Cooperation Company, Pyongyang University of Automation, the 110th Research Center, and the Technical Reconnaissance Bureau.
• An individual named Kim Sang Man was also sanctioned by OFAC for receiving $2 million worth of cryptocurrency by selling IT equipment to DPRK-affiliated teams in China and Russia.

Binance Seizes Crypto Assets Tied to North Korea

Binance has announced its collaboration with US law enforcement agencies, seizing $4.4 million worth of crypto assets connected to cybercrime organizations operating in North Korea. In a series of tweets on May 25, Binance revealed that its investigations team actively worked with US authorities to disrupt the illicit revenue-generating activities of four now-sanctioned entities based in North Korea.

Sanctioned Entities Tied to North Korea

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) had previously declared sanctions against four entities and one individual involved in malicious cyber activities supporting the Democratic People’s Republic of Korea (DPRK) Government. The entities targeted by the sanctions were the Chinyong Information Technology Cooperation Company, Pyongyang University of Automation, the 110th Research Center, and the Technical Reconnaissance Bureau.

Chinyong’s Involvement in Illicit Activities

The Chinyong company is known to employ thousands of highly skilled IT workers worldwide, allegedly involved in generating revenue to support unlawful weapons of mass destruction (WMD) and ballistic missile programs. The workers are believed to utilize fake or stolen identities to secure overseas IT positions, including roles in the technology and cryptocurrency sectors. The payments received for their work are subsequently laundered back to North Korea through crypto exchanges.

Kim Sang Man Sanctioned

The OFAC sanctions also encompassed an individual named Kim Sang Man, who is suspected of being involved in salary payments to family members of Chinyong’s overseas worker delegations. Kim also allegedly received $2 million worth of cryptocurrency by selling IT equipment to DPRK-affiliated teams in China and Russia.

Technical Reconnaissance Bureau Responsible for Cyberattacks

The Technical Reconnaissance Bureau is recognized as a key driver of the DPRK’s offensive cyber tactics and tools. It oversees various departments associated with Lazarus Group which have been implicated in numerous cyberattacks on cryptocurrency and blockchain projects in recent years