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#Sanctions levied on North Korean Cryptocurrency Hackers

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According to reports, the sanctions regulatory agency of the US Treasury Department has banned three North Koreans who support Lazarus Group, a North Korean hacker team known for s

#Sanctions levied on North Korean Cryptocurrency Hackers

According to reports, the sanctions regulatory agency of the US Treasury Department has banned three North Koreans who support Lazarus Group, a North Korean hacker team known for stealing cryptocurrency. The Ministry of Finance stated that two of the sanctioned individuals, Cheng Hung Man and Wu Huihui, were over-the-counter traders providing cryptocurrency trading facilities for Lazarus, while a third party, Sim Hyon Sop, provided other financial support.

The US Treasury sanctioned three North Koreans who provided support for the North Korean hacker team Lazarus Group

Sanctions have been imposed on three North Koreans by the sanctions regulatory agency of the US Treasury Department, for supporting the Lazarus Group, a notorious North Korean hacker team, in its cryptocurrency theft activities. The Ministry of Finance stated that two out of the three sanctioned individuals, Cheng Hung Man and Wu Huihui, provided over-the-counter trading facilities for Lazarus, while the third sanctioned party, Sim Hyon Sop, provided financial support.
##An Overview of Lazarus Group
Lazarus Group, also known as Hidden Cobra, is a state-sponsored hacker group that originated in North Korea. The group has a history of targeting financial institutions and cryptocurrency exchanges to steal digital assets, primarily for the purpose of onboarding revenue to the North Korean regime.
Over the years, Lazarus has been linked to several major cyber attacks. These include the hack of the Bangladesh central bank in 2016 and the Sony Pictures hack in 2014. In recent years, the group has extended its focus towards holding cryptocurrency exchanges to ransom, exploiting users and hacking software flaws.
##The Sanctions on North Korean Cryptocurrency Hackers
The US Treasury Department’s Office of Foreign Assets Control (OFAC) is responsible for enforcing economic and trade sanctions against foreign individuals, companies, and countries. On August 19, 2021, the OFAC levied sanctions on three North Koreans for providing financial and trading support to the Lazarus Group.
The three sanctioned individuals were Cheng Hung Man, a cryptocurrency trader based in Singapore, Wu Huihui, a Chinese national and another cryptocurrency trader, and Sim Hyon Sop, also a Chinese national, who provided financial support for the Lazarus Group.
##The Ripple Effect of the Sanctions
Sanctions like these have a ripple effect on the entire cryptocurrency industry. While cryptocurrency trading is relatively decentralised, there are still a few key players who have a significant impact on how the market evolves. These include global exchanges and trading platforms, which are crucial for liquidity and pricing transparency.
Therefore, when key players get sanctioned, it affects the confidence of other stakeholders in the market. It leads to increased regulatory scrutiny and could result in the exit of other players who are not willing to deal with sanctions or reputation risks, leading to market fragmentation.
##Conclusion
The recent imposition of sanctions on North Korean cryptocurrency hackers signifies a significant step in the fight against cybercrime by the US. It aims to deter financial criminal activity by elevating the cost and risk of such operations.
Moreover, it highlights the growing importance of cryptocurrency in the global economy and the need for comprehensive regulatory measures to mitigate the risks associated with digital currencies. While there are many challenges, such as regulatory fragmentation and lack of consensus on some regulations, the imposition of sanctions suggests that international efforts are underway to establish cryptocurrency governance.
##FAQs
**1. What are the Lazarus Group and why are they a threat?**
Lazarus Group is a state-sponsored North Korean hacker group known for targeting financial institutions and cryptocurrency exchanges to steal digital assets for revenue generation by the North Korean regime.
**2. Who were the individuals sanctioned by the US Treasury Department for supporting the Lazarus Group?**
The three individuals sanctioned were Cheng Hung Man, Wu Huihui, and Sim Hyon Sop, who respectively provided over-the-counter cryptocurrency trading and financial support for the Lazarus Group.
**3. What is the impact of the sanctions on the cryptocurrency industry?**
Sanctions on key players in the cryptocurrency industry can result in market fragmentation and regulatory scrutiny, leading to exit by players who are not willing to deal with sanctions or reputation risks, ultimately leading to a loss of confidence in the market.

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