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DOJ Seizes $7.74M in Crypto Tied to North Korean Tech Ring

North Korean Crypto Laundering Network Exposed

North Korea’s sprawling crypto laundering network has been hammered as U.S. authorities seized $7.74 million tied to fake IT jobs, blockchain trickery, and weapons funding.

DOJ Targets North Korea’s Crypto Laundering Network With Asset Seizure

The U.S. Department of Justice (DOJ) announced on June 5 that it has filed a civil forfeiture complaint seeking to recover over $7.74 million in cryptocurrency allegedly funneled to North Korea through an elaborate global scheme.

Prosecutors say the funds were generated by North Korean IT workers who covertly gained employment with companies—many based in the United States—by misrepresenting their identities and locations. These workers, who operated from countries including China and Russia, used fraudulent documents to secure remote positions and received compensation primarily in digital assets such as USDC and USDT. The Justice Department stated:

While the North Koreans were attempting to launder those ill-gotten gains, the U.S. government was able to freeze and seize over $7.74 million tied to the scheme.

The IT operatives allegedly utilized a variety of tactics to disguise the source and destination of the crypto assets. These included fictitious online personas, fragmented transactions, cross-chain transfers, token swaps, purchases of NFTs, and U.S.-based online accounts to add a layer of legitimacy. Ultimately, prosecutors claim the funds were directed back to North Korea, including through channels involving Sim Hyon Sop, a Foreign Trade Bank official, and Kim Sang Man, CEO of the Chinyong organization, which is linked to North Korea’s Ministry of Defense.

“This forfeiture action highlights, once again, the North Korean government’s exploitation of the cryptocurrency ecosystem to fund its illicit priorities,” stated Matthew R. Galeotti, head of the DOJ’s Criminal Division. Sue J. Bai, leading the National Security Division, noted:

For years, North Korea has exploited global remote IT contracting and cryptocurrency ecosystems to evade U.S. sanctions and bankroll its weapons programs.

She continued: “Today’s multimillion-dollar forfeiture action reflects the Department’s strategic focus on disrupting these illicit revenue schemes. We will continue to use every legal tool available to cut off the financial lifelines that sustain the DPRK and its destabilizing agenda.”

Source: Bitcoin

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