U.S. federal prosecutors are preparing new actions targeting Chinese firms that are critical financial conduits for North Korea’s government, according to people familiar with the matter.
The Washington U.S. attorney’s office in May obtained warrants to freeze funds of Chinese firms that were processed through U.S. banks, alleging these firms help finance North Korea’s weapons program.
Prosecutors are now moving toward building broader cases that would result in the permanent seizure of the funds, among other things. As part of the investigation, U.S. banks that froze the funds flagged additional information that prosecutors are using to build cases aimed at further squeezing the finances of the nuclear-armed state, said people familiar with the matter.
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