DOJ Seeks $7.7 Million Forfeiture in Crypto From North Korean Hackers Masquerading as IT Workers
The post DOJ Seeks $7.7 Million Forfeiture in Crypto From North Korean Hackers Masquerading as IT Workers appeared on BitcoinEthereumNews.com. In brief DOJ seized $7.74 million in crypto laundered by North Korean IT workers who used fake identities to get jobs at U.S. companies. Workers were paid in stablecoins, then laundered funds through various methods before sending proceeds to the North Korean government. Security experts say this growing threat uses AI-generated personas and deepfake technology, potentially generating hundreds of millions annually for the regime. The U.S. Department of Justice last week filed a civil forfeiture claim for $7.74 million in crypto laundered by North Korean IT workers who fraudulently gained employment with companies in the U.S. and abroad. The U.S. government seized the funds as part of an operation against a North Korean scheme to evade sanctions, with authorities indicting a North Korean Foreign Trade Bank representative, Sim Hyon Sop, in connection with the scheme in April 2023. According to the DOJ, North Korean IT workers gained employment at U.S. crypto companies using fake or fraudulently obtained identities, before laundering their income through Sim for the benefit of the regime in Pyongyang. The forfeiture complaint also details that the IT workers had been deployed in various locations around the world, including in China, Russia and Laos. By hiding their true identities and locations, the workers were able to secure employment with blockchain firms, who generally paid them in stablecoins—USDC or Tether. “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, the head of the DOJ’s National Security Division. The Department of Justice also reports that the IT workers used several methods to launder their fraudulent income, including setting up exchange accounts with fictitious IDs, making multiple small transfers, converting from one token to another, buying NFTs, and mixing their funds. Once ostensibly laundered,…
The post DOJ Seeks $7.7 Million Forfeiture in Crypto From North Korean Hackers Masquerading as IT Workers appeared on BitcoinEthereumNews.com.
In brief DOJ seized $7.74 million in crypto laundered by North Korean IT workers who used fake identities to get jobs at U.S. companies. Workers were paid in stablecoins, then laundered funds through various methods before sending proceeds to the North Korean government. Security experts say this growing threat uses AI-generated personas and deepfake technology, potentially generating hundreds of millions annually for the regime. The U.S. Department of Justice last week filed a civil forfeiture claim for $7.74 million in crypto laundered by North Korean IT workers who fraudulently gained employment with companies in the U.S. and abroad. The U.S. government seized the funds as part of an operation against a North Korean scheme to evade sanctions, with authorities indicting a North Korean Foreign Trade Bank representative, Sim Hyon Sop, in connection with the scheme in April 2023. According to the DOJ, North Korean IT workers gained employment at U.S. crypto companies using fake or fraudulently obtained identities, before laundering their income through Sim for the benefit of the regime in Pyongyang. The forfeiture complaint also details that the IT workers had been deployed in various locations around the world, including in China, Russia and Laos. By hiding their true identities and locations, the workers were able to secure employment with blockchain firms, who generally paid them in stablecoins—USDC or Tether. “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, the head of the DOJ’s National Security Division. The Department of Justice also reports that the IT workers used several methods to launder their fraudulent income, including setting up exchange accounts with fictitious IDs, making multiple small transfers, converting from one token to another, buying NFTs, and mixing their funds. Once ostensibly laundered,…
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