US sanctions North Korea's Air Koryo for missile transactions

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US sanctions North Korea's Air Koryo for missile transactions

Ofac said the sanctions are part of an effort to limit the development of ballistic missiles.

The Biden Administration has raised the concerns in the Tornado Cash sanctions case, alleging that the cryptocurrency mixer was involved in facilitating transactions connected to North Korea's nuclear weapons program.

On Tuesday, the Office of Foreign Asset Control (OAF) sanctioned two people who work for Air Koryo, North Korea's national air carrier, for 'engaging in transportation and purchasing activities' on behalf of the pariah Asian nation.

OFAC said the airline is controlled by North Korea's military, and the sanctions were made as part of Washington's efforts to curb the development of ballistic missiles and nuclear weapons.

Tornado Cash, part of the U.S. Treasury Department, said Tornado Cash helped cover the movement of $455 million worth of cryptocurrency stolen in March by the Lazarus Group, a black hat hacking outfit backed by Pyongyang.

S sanctions action targets two key Nodes of the DPRK's weapons programs: its increasing reliance on illegal activities, including cybercrime, to generate revenue, and its ability to procure and transport goods in support of weapons of mass destruction and ballistic missile programs, said Brian Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence. North Korea is known as DPRK.

The North Koreans fired ballistic missiles into the sea last month in a bid to terrorize South Korea and Japan.

On August 8, OFAC added Tornado Cash to its Specially Designated Nationals list. The move made it illegal for US based entities to interact with smart contracts or wallets associated with the Tornado Cash protocol.

Coin Center, a non-profit organization, filed a lawsuit against the U.S. Treasury Department last month, challenging its authority to sanction Tornado Cash because it's not a person or company.

The chief executive of Coinbase, the biggest crypto exchange in the US, filed a similar lawsuit against the government. The document argued that bad factors should not be sanctioned and should not be coded.