The US Department of Justice is seeking to seize 7.7 million USD in cryptocurrency, accusing North Korean IT personnel of using fake identities to launder money.
The United States Department of Justice (DOJ) is pursuing a significant civil lawsuit to seize 7.74 million USD in cryptocurrency, related to allegations that North Korean IT personnel used fake identities to conduct sophisticated money laundering activities. According to information from the DOJ, this group of personnel impersonated identities to work remotely as independent contractors for blockchain companies.
The assets frozen since April 2023 include stablecoins, Bitcoin, Non-Fungible Tokens (NFT), and Ethereum Name Service domains, currently held in multiple self-managed wallets and accounts on Binance.
This is part of a broader investigation targeting Sim Hyon Sop, who is believed to be a banking contact in China, specializing in supporting money laundering activities for North Korea. The civil complaint filed on June 5 in the federal court in Washington, D.C., is the latest step in the US effort to block illegal financial sources of the Pyongyang regime.
According to the DOJ, North Korean IT personnel exploited gaps in the digital financial system, using forged identities and sophisticated disguise methods to get hired. After receiving payment, primarily in stablecoins like USDC and Tether, they conducted advanced money laundering techniques such as "chain hopping" (transferring assets across multiple blockchains) and converting tokens to Non-Fungible Tokens to conceal the origin of cryptocurrency.
Matthew Galeotti, head of the DOJ's criminal division, stated: "The Department of Justice will use every legal means possible to protect the cryptocurrency ecosystem and prevent North Korea from benefiting from illegal funds." The laundered funds are expected to be transferred to North Korea through Sim Hyon Sop and another individual, Kim Sang Man, who has been sanctioned by the Office of Foreign Asset Control (OFAC).
This is not an isolated case. In April, Google's Threat Intelligence Group published a report showing that North Korea is expanding its activities to Europe to avoid increasingly strict surveillance in the US.
In 2022, the US Department of Justice, Department of State, and Department of Treasury issued a joint warning about North Korean IT personnel seeking job opportunities in high-tech fields, especially cryptocurrency, demonstrating a systematic and increasingly aggressive strategy by Pyongyang.
