DeFi-Risk-Full-Review.pdf (2 MB)

The U.S. Treasury DeFi risk assessment says DPRK cyber actors, along with ransomware operators, thieves, and scammers, use DeFi services to transfer and launder illicit proceeds. It frames this as a sanctions-evasion and proliferation-finance risk because North Korea can exploit virtual-asset theft and weak AML/CFT controls to fund nuclear and missile programs. The report highlights vulnerabilities including non-compliant DeFi services, disintermediation, cross-border regulatory gaps, and cyber-related weaknesses, and recommends stronger AML/CFT supervision and mitigation across DeFi and virtual-asset on/off-ramps.