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U.S., Japan and South Korea Tighten Crackdown on North Korea’s Remote IT Worker Scheme With New Sanctions

Officials say the scheme converts stolen crypto plus remote pay into financing for prohibited weapons.

Overview

  • The U.S. Treasury sanctioned two individuals and two entities — Kim Ung Sun, Vitaliy Sergeyevich Andreyev, Shenyang Geumpungri Network Technology, and Korea Sinjin Trading Corp. — for facilitating North Korea’s fraudulent IT worker network.
  • Treasury said Andreyev worked with Kim Ung Sun since December 2024 to convert nearly $600,000 in cryptocurrency to U.S. dollars, while the China-based front Shenyang Geumpungri generated more than $1 million in profits for Chinyong and Sinjin since 2021.
  • Washington’s action coincided with a joint U.S.-Japan-ROK statement pledging coordinated countermeasures and warning companies about legal, financial, and reputational risks tied to hiring deceptive DPRK IT operatives.
  • Japan issued an updated alert to industry, South Korea released advisories, and the three governments co-hosted a Tokyo forum on August 26 with Mandiant that brought together over 130 officials and private-sector stakeholders.
  • Officials say North Korean teams use stolen identities, false locations, AI tools, and foreign facilitators to secure freelance and remote roles, then steal data, siphon funds, and conduct ransomware and crypto theft.