The United States Federal Bureau of Investigation (FBI) has placed a massive $7 million bounty on the head of a North Korean banker, Sim Hyon Sop, who is accused of being a key financial operative for Kim Jong Un's regime. U.S. officials allege that Sim has masterminded complex schemes to launder money and evade international sanctions, funneling hundreds of millions of dollars to fund Pyongyang's weapons programs and luxury goods.
The Elusive Banker and His Global Network
Sim Hyon Sop, described by U.S. authorities as a 42-year-old man standing at an unusually tall 6 feet 1 inch, is believed to be living in Dandong, China. According to indictments and investigations, his role is vital: to ensure North Korea's financial survival despite crippling global sanctions. He represents an affiliate of the state-run Foreign Trade Bank, which is itself under sanctions for funding weapons development.
A former North Korean diplomat, Ryu Hyeon Woo, who defected to South Korea, described Sim as a "go-getter" and "the most useful person in the Arab region for anything relating to money laundering." Ryu claims to have met Sim over ten times in the Middle East, where Sim allegedly explained his methods of moving money between countries and shell companies while paying brokers to hide its origins.
How the Money Laundering Machine Operates
U.S. prosecutors, who accessed Sim's emails and transaction spreadsheets, detail a multi-pronged operation. One major source of funds is stolen cryptocurrency, with North Korean cyber thefts netting over $6 billion over the years. In one instance, Sim allegedly used bitcoin from a 2017 heist to buy communications equipment for Pyongyang, routing the payment through a Hong Kong front company.
Sim's network also allegedly financed the trade in counterfeit cigarettes, a lucrative business for North Korea. An indictment states he arranged over $800,000 in $100 bills to purchase raw tobacco. To buy a helicopter from Russia, he reportedly camouflaged the $300,000 deal by routing payments through a law firm in Zimbabwe.
Shockingly, major U.S. banks including Citibank, JPMorgan, and Wells Fargo unknowingly processed at least 310 transactions worth about $74 million for these schemes, according to court documents. Other banks like Deutsche Bank and HSBC were also implicated.
The IT Worker Scam and Iranian Links
The case highlights how North Korea infiltrates the global tech sector. In 2021, a California entrepreneur, Zaki Manian, hired remote coders he believed were in Singapore. An analysis by crypto firm TRM Labs revealed that $216,000 in cryptocurrency paid as salary was ultimately funneled to a digital wallet controlled by Sim Hyon Sop.
Despite being indicted in 2023 and sanctioned by the U.S. Treasury, Sim remains active. Crypto researchers tracked a transfer of at least $67,000 from a Sim-controlled wallet to one linked to Iran's Islamic Revolutionary Guard Corps in February, suggesting possible collaboration between the two sanctioned states.
The international effort to catch him is fraught with challenges. China, where he is believed to reside, has no extradition treaty with the U.S. and has opposed unilateral American sanctions. The United Arab Emirates cancelled his residency visa in 2019, but he stayed for roughly three more years before moving to China.
U.S. Attorney Jeanine Pirro vowed to continue pursuing North Korea's financial agents, stating the commitment is to "doggedly investigate and charge" those who use U.S. infrastructure to fund weapons of mass destruction. With the FBI's reward now at a record $7 million, the hunt for the man who keeps Pyongyang's money flowing intensifies, even as his elusive network continues to operate.
