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3d ago

U.S. Seeks Forfeiture of $7.74 Million in Crypto Laundered by North Korean IT Workers

The Justice Department alleges fraudulent remote IT hires provided millions of dollars in cryptocurrency to fund North Korea’s weapons programs.

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The Justice Department wants to confiscate $7.7 million of crypto linked to an alleged North Korean agent.
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Overview

  • The Department of Justice filed the complaint in the U.S. District Court for the District of Columbia to seize $7.74 million after freezing the funds under the April 2023 indictment of Sim Hyon Sop.
  • North Korean IT operatives obtained remote jobs at U.S. companies using stolen or falsified American identities to bypass hiring and due diligence checks.
  • Laundering methods included setting up fictitious accounts, moving small amounts across multiple blockchains, purchasing NFTs and commingling funds before routing proceeds through intermediaries like Sim Hyon Sop and Kim Sang Man.
  • United Nations estimates indicate the network has generated $250 million to $600 million annually since 2018, with proceeds directed toward sanctions-evasion and North Korea’s weapons development.
  • The forfeiture action complements prior OFAC sanctions on the North Korean Foreign Trade Bank and Chinyong IT Cooperation and follows FBI guidance updates to help firms detect such schemes.