Senators Seek Action Against North Korea’s Crypto Funding

Three senators from the United States reportedly sent a letter to the White House and Treasury Department to prevent North Korea from using cryptocurrencies to finance its nuclear program and circumvent sanctions.

The Wall Street Journal reported on August 4 that Sens. Elizabeth Warren, Tim Kaine, and Chris Van Hollen requested information on how the U.S. government was addressing the illegal use of digital assets by the Democratic People’s Republic of Korea from the Biden administration.

The letter cited reports that North Korean hackers were responsible for stealing more than $3 billion worth of cryptocurrency since 2018. The funds were used to finance a portion of North Korea’s missile program.

The three senators reportedly wrote, “North Korea has methodically developed its expertise in digital assets over the past few years.”

Multiple news outlets have reported that hackers with ties to North Korea stole billions of dollars in cryptocurrency, sometimes using mixers to conceal the funds from authorities.

In November 2022, the U.S. Treasury Department’s Office of Foreign Assets Control added Tornado Cash to its list of sanctioned entities, citing concerns over crypto being used to finance North Korea’s nuclear program.

Warren has been the driving force behind numerous initiatives to combat the illegal use of cryptocurrencies, from proposing a connection between digital asset payments and Chinese companies that supplied precursors to the opioid fentanyl to introducing legislation for stricter Anti-Money Laundering regulations.

In July, she was a member of a bipartisan group of senators that advocated for anti-crypto mixer and privacy coin provisions in the National Defense Authorization Act.