- U.S. seizes $7.7M in crypto from North Korean IT workers.
- North Koreans laundered funds using NFTs, stablecoins, and false identities.
- FBI warns of job scams; OpenAI, Google shut accounts.
In a major development, the U.S. Department of Justice (DOJ) has taken decisive legal action against North Korea’s use of cryptocurrency to evade sanctions and finance its weapons program. The DOJ sought to take more than $7.74 million in cryptocurrency that North Korean IT workers worldwide allegedly laundered.
North Korean Agents Used NFTs, Stablecoins to Hide Funds
It is alleged in the complaint that these operatives got remote work at U.S. and global companies using false names and documents. Without following standard checks, they got the chance to earn money in USDC or USDT stablecoins. They turned these earnings back into North Korea by using various ways to disguise the money. This consisted of handling money in little sums, changing from one cryptocurrency to another, dealing with non-fungible tokens (NFTs), and hiding their digital activity.
The funds connect to an earlier case involving Sim Hyon Sop from North Korea’s Foreign Trade Bank. Sim handled the money laundering operations. He worked with Kim Sang Man, CEO of Chinyong IT Cooperation Company. Kim hired North Korean workers in Russia and Laos.
As a result of this, the actions fit with the broader DPRK RevGen: Domestic Enabler Initiative introduced by the U.S. authorities in March 2024. The work of the program involves stopping North Korea from getting income through digital sources. They have confirmed that over the past year, they have stopped cybercrime and sanctions evasion by making similar arrests and convictions.
According to Sue J. Bai from the DOJ’s National Security Division, this move demonstrates that they will cut off North Korea’s finances by relying on available legal tools. According to Matthew R. Galeotti, chief of the Criminal Division, protecting the area of cryptocurrency from abuse should be top priority.
OpenAI, Google Shut Down Accounts Tied to North Korean IT Workers
Transitioning to a broader concern, the FBI has warned that this is not an isolated incident. The reason is rising occurrence of job scams happening online. Assistant Director of the FBI’s Counterintelligence Division, Roman Rozhavsky, discussed that American companies unwittingly gave jobs to North Koreans using someone else’s identity. For this reason, the FBI is recommending that employers pay extra attention while recruiting and hiring remote employees.
Moreover, technology companies are getting involved. OpenAI and Google have stopped a number of accounts believed to belong to North Korean IT clusters. Criminals would use those accounts to make phony résumés and complete job applications with help from AI.
Despite the actions against North Korea decreasing during the current administration in the U.S., this forfeiture suggests that there is renewed effort to keep them accountable. The case reveals that rising technologies can be both helpful and dangerous, mainly because rogue actors can use them.
Overall, the DOJ’s latest move demonstrates that it is sticking to its goal of enforcing sanctions, dismantling crime-related finances, and securing the internet and computers around the world.
