Chainalysis Traces North Korean Crypto Cash-Outs via Garantex After US Sanctions

Blockchain analytics firm Chainalysis has traced how North Korean operatives are cashing out cryptocurrency through the Russian exchange Garantex, following recent U.S. sanctions against 10 individuals and one entity linked to the scheme. The sanctions target a network accused of helping North Korean IT workers launder funds to support the country’s weapons programs. Chainalysis’s analysis shows that these operatives have moved millions of dollars in digital assets, often converting them into fiat currency through Garantex, which has been a known conduit for illicit finance. This activity underscores how Pyongyang continues to exploit the global crypto ecosystem despite international efforts to isolate it. By mapping transaction flows, Chainalysis provides crucial intelligence for exchanges and regulators to block such cash-outs. The findings come as U.S. authorities intensify pressure on North Korea’s cyber-enabled revenue streams, which are estimated to fund a significant portion of its missile development. For the crypto industry, the report is a stark reminder of the persistent sanctions-evasion risks and the need for robust compliance tools. As enforcement tightens, exchanges like Garantex may face further scrutiny or even secondary sanctions if they fail to curb illicit activity.