The US Department of Justice has filed a civil forfeiture complaint against North Korean IT workers for illegally gaining employment with US businesses, and earning millions for the Korean government, which amounts to violations of sanctions.
The government seized $7.7m in funds in 2023 that involved Sim Hyon Sop- a worker at the North Korean Foreign Trade Bank (FTB) who joined hands with IT workers to launder the money for Pyongyang.
According to the complaint, the North Korean IT workers escaped security via fraud IDs and tactics that hid their real location. The salaries were credited in stablecoins like USDT and USDC.
To launder the money, employees created accounts using fake IDs, transferred funds in small amounts to other blockchains (chain hopping), and/or converted them into other digital currencies (token swapping).
Scammers also bought non-fungible tokens (NFTs) and used US accounts to make their operations look real. Sim worked with Kim Sang Man, the CEO of the “Jinyong IT Cooperation Company,” who served as a middleman between the FTB and the IT workers.
According to the Justice Department’s National Security Division, North Korea, for years has “exploited global remote IT contracting and cryptocurrency ecosystems to evade US sanctions and bankroll its weapons programs.”
Department head Sue Bai said, “Today’s multimillion-dollar forfeiture action reflects the Department’s strategic focus on disrupting these illicit revenue schemes. We will
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