The U.S. Department of Justice (DOJ) has taken legal action against over $7.74 million in cryptocurrency tied to North Korean IT workers. These workers used false identities to secure remote jobs with U.S. companies.
They earned digital currency and sent the funds to their government. The goal was to avoid sanctions and support the regime’s weapons programs. Investigators linked the funds to Sim Hyon Sop, a representative of North Korea’s Foreign Trade Bank.
Sim worked with others to move the cryptocurrency through complex laundering steps. They created fake profiles, broke up transactions, and used different blockchains to hide the origin. They also bought digital assets like NFTs to store and hide their value.
DOJ pursues crypto-based sanctions evasion
The scheme employed workers in China, Russia, and other countries. The workers used stolen or fake identities to impersonate the companies. Once hired, they were compensated in cryptocurrency, predominantly in stablecoins like USDC and USDT. The money was then remitted to North Korea through clandestine transfers.
Part of it passed through identified facilitators, such as Kim Sang Man, a CEO connected to the North Korean military. The Justice Department initially seized the assets in April 2023. Since then, it has constructed a case to take the money under civil forfeiture laws. This newest action follows previous indictments and disruptions against similar operations.
U.S. officials have tracked North Korea’s use of technology workers and stolen cryptocurrencies to finance government projects. The probe unveiled a big operation. North Korean operatives used accounts based in the U.S. to portray authenticity. They camouflaged stolen funds with other types of assets to mislead investigators.
Justice Department targets Cyber-threats
The scheme also depended on companies that knew neither the employee’s identity nor their motivation. U.S. agencies have warned about this threat since 2022. New guidance in 2023 and 2024 emphasized how companies could detect and prevent such fraud.
The FBI investigation continues. Federal prosecutors, along with cyber experts, are investigating the matter. This forfeiture represents another effort to shut off North Korea’s access to international financial systems.
The Justice Department has said it would continue to use legal tools to thwart foreign threats, safeguard American businesses, and uphold sanctions. This case underscores how digital finance and remote employment can be exploited by criminal syndicates if they are not adequately monitored.
