The U.S. Department of Justice (DoJ) said it has filed a civil forfeiture complaint in federal court that targets over $7.74 million in cryptocurrency, non-fungible tokens (NFTs), and other digital assets allegedly linked to a global IT worker scheme orchestrated by North Korea. "For years, North Korea has exploited global remote IT contracting and cryptocurrency ecosystems to evade U.S. sanctions and bankroll its weapons programs," said Sue J. Bai, Head of the Justice Department's National Security Division. The Justice Department said the funds were originally restrained in connection with an April 2023 indictment against Sim Hyon-Sop, a North Korean Foreign Trade Bank (FTB) representative who is believed to have conspired with the IT workers. The IT workers, the department added, gained employment at U.S. cryptocurrency companies using fake identities and then laundered their ill-gotten gains through Sim to further Pyongyang's strategic objectives in violation of the sanctions imposed by the U.S. Treasury's Office of Foreign Assets Control (OFAC) and the United Nations. The fraudulent scheme has evolved into a massive operation since its origins way back in 2017. The illegal employment operation leverages a combination of stolen and fictitious identities, aided with the help of artificial intelligence (AI) tools like OpenAI ChatGPT, to bypass due diligence checks and secure freelance jobs. Tracked under the monikers Wagmole and UNC5267, the activity is assessed to be…Read More
U.S. Seizes $7.74M in Crypto Tied to North Korea’s Global Fake IT Worker Network
