The U.S. Department of Justice (DoJ) has filed a civil forfeiture to seize $7.74 million worth of crypto linked to North Korean IT workers. As revealed, these workers pretended to be remote employees who earned money illegally. These criminals usually send the money back to North Korea to help the government avoid sanctions and fund its military programs . North Korean Workers Infiltrate Global Tech Companies The DOJ reported that North Korean IT workers got jobs at crypto companies in the U.S. and other countries by using fake or stolen identities. They did not work from North Korea but from places like China, Russia, and Laos. They hid who they were to get remote jobs, mainly in blockchain and crypto firms. In April, Google’s Threat Intelligence Group reported that North Korean agents have expanded their operations beyond the U.S. They are now targeting companies in the UK, Germany, Portugal, and Serbia. The targets include firms developing AI tools, blockchain apps, and smart contracts on the Solana network. These operatives often use local contacts to bypass identity checks and receive payments through services like TransferWise and Payoneer. North Korea Criminals Launder Crypto with Fake IDs and Tricks The workers were paid in stablecoins like USDC and USDT. To avoid being caught, they laundered the money by moving small amounts through fake accounts, then sent it back to North Korea. They also buy Non-Fungible Tokens (NFTs) and use crypto mixers to cover their tracks. After cleaning the money, they sent it back to North Korea. The authorities have arrested two people who helped move the money. The accomplices include Sim Hyon Sop, who worked for North Korea’s Foreign Trade Bank, and Kim Sang Man, who worked with the Ministry of Defense. In April 2023, the U.S. charged Sim Hyon Sop with two crimes, including working with fake IT employees to earn money from U.S. companies and using that money to buy goods for North Korea through illegal crypto trades. Expert Says IT North Korean Scammers Earn a Million in Dollars Many experts say this is not a one-time case. Andrew Fierman from Chainalysis warned that IT fraud is a steady income source for North Korean criminals. He cited a previous DOJ case where 14 North Koreans made $88 million over six years using similar scams. Fierman said these scams also fund North Korea’s spying and cyberattacks. Security expert Michael Barnhart added that North Korean workers are inside many companies, sometimes creating fake crypto businesses or joining ones with weak security. He estimates they could be making hundreds of millions yearly through illegal jobs. Fierman revealed these scammers are hard to catch because they use advanced tools. They use AI-created fake profiles and deepfake videos to pass interviews. They also use software to cheat on technical tests, making them look like real applicants. The post DoJ Seizes $7.74M in Crypto from Fake North Korea IT Workers appeared first on TheCoinrise.com .
