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U.S., Japan and South Korea Escalate Crackdown on North Korean IT Schemes With New Sanctions

Officials warn the schemes now leverage AI, deepfakes, foreign facilitators, crypto laundering to evade hiring screens.

SEOUL, SOUTH KOREA - 2025/05/09: People watch a 24-hour Yonhap News TV broadcast on a large screen at Seoul Railway Station, showing footage of a joint striking drill involving long-range artillery and missile systems conducted by the Korean People's Army eastern front division at an undisclosed location in North Korea. North Korean leader Kim Jong Un oversaw a joint striking drill involving long-range artillery and a new variant of tactical ballistic missiles, reaffirming the combat readiness of the country’s nuclear forces, state media KCNA reported on May 9. The exercise featured a 600mm multiple rocket launcher and the Hwasongpho-11-Ka tactical ballistic missile. South Korea’s military detected multiple short-range ballistic missile launches from Wonsan between 8:10 and 9:20 a.m. on May 8—North Korea’s fourth missile test of the year. (Photo by Kim Jae-Hwan/SOPA Images/LightRocket via Getty Images)
This file photo, released by Reuters, shows a sign marking the U.S Treasury Department in Washington, D.C., on Aug. 6, 2018. (Yonhap)
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Overview

  • Washington’s Office of Foreign Assets Control designated four targets tied to the operation: Kim Ung Sun, Vitaliy Sergeyevich Andreyev, Korea Sinjin Trading Corp., and China-based Shenyang Geumpungri Network Technology Co.
  • Treasury said the network generated at least $1 million for the regime, and alleged Andreyev worked with Kim to convert nearly $600,000 in cryptocurrency to U.S. dollars since December 2024.
  • In a joint statement, the three governments said North Korean operatives use false identities, AI tools and foreign facilitators to secure freelance contracts worldwide, with many linked to blockchain and cryptocurrency work.
  • The allies co-hosted a Tokyo forum on Aug. 26 with Mandiant that brought together more than 130 representatives from tech, payments, crypto, AI and Web3 firms to strengthen defenses.
  • Coordinated steps include Japan updating private‑sector alerts and the ROK issuing advisories, while U.S. actions build on recent asset seizures and reward offers to further disrupt the facilitator networks.