The U.S. Department of Justice has announced a civil forfeiture suit against North Korea regarding the abuse of international information technology staffing. The lawsuit targets workers supported by the North Korean government who illegally obtain remote jobs and send cryptocurrency profits to Pyongyang.
The U.S. says North Korean IT workers used bogus identities to land jobs with firms unaware of their origins. North worked from nations like China and Russia, raking in millions in cryptocurrency through their technology contracts. They allegedly used tactics such as blockchain token exchanges and virtual identity creation to remain unnoticed.
Officials named Sim Hyon Sop, a Foreign Trade Bank representative, and Kim Sang Man, CEO of Chinyong, in the complaint. Chinyong is a North Korean Ministry of Defense entity that features IT workers in Russia and Laos. The workers transmitted illegal money to the regime through Sim and Kim using sophisticated laundering schemes.
Kim allegedly handled the financial transactions between employees and the bank, whereas Sim was crucial in overseeing cryptocurrency transfers.
DOJ expands crackdown on North Korean networks
The U.S. froze over $7.74 million linked to these schemes as part of an earlier indictment filed in April 2023. In total, both Sim and Kim are on the Specially Designated Nationals (SDN) list enforced by the U.S. Treasury.
This forfeiture follows actions throughout 2024 and early 2025 under the DPRK RevGen: Domestic Enabler Initiative. The initiative targets U.S. entities that are supporting North Korean operations as well as North Korean agents operating in cyberspace.
The lawsuit was handled by federal prosecutors Jessica Peck, Gregory J. Nicosia Jr., and Emma Ellenrieder, alongside FBI teams.
Former Special Agent Chris Wong also contributed to the investigation. The FBI warns businesses to remain cautious when hiring remote talent, especially with growing threats from North Korean cyber operatives seeking revenue streams.
The Department of Justice confirmed its continued commitment to shutting down financial support for North Korea’s weapons and military projects.
