- DOJ links scheme to sanctioned bank official Sim Hyon Sop and defense-tied IT firm Chinyong.
- FBI warns of North Korean identity theft targeting U.S. companies; urges stricter remote hiring checks.
Federal authorities filed legal action to seize $7.7 million in cryptocurrency. The U.S. Department of Justice asserts these funds originated from North Korean IT personnel. These individuals allegedly used false identities to secure remote work at tech firms. Their earnings, paid in digital currencies like USDT and USDC, were funneled to North Korea’s government.
Department Files Civil Forfeiture Complaint Against Over $7.74M Laundered on Behalf of the North Korean Government
🔗: https://t.co/T6nh2ETMYY pic.twitter.com/o23HY6C6Zw
— U.S. Department of Justice (@TheJusticeDept) June 5, 2025
The civil complaint identifies Sim Hyon Sop, a representative of North Korea’s Foreign Trade Bank. Sim faces prior sanctions for similar activities. Court documents allege he coordinated with Kim Sang Man, CEO of Chinyong—an IT company linked to North Korea’s Ministry of Defense.
Workers employed layered tactics to obscure transactions. These included splitting payments, swapping tokens, and purchasing NFTs. Funds then moved through intermediary platforms back to state accounts.
Matthew Galeotti of the DOJ’s Criminal Division stated the operation exploited cryptocurrency systems. He emphasized ongoing efforts to disrupt financial channels supporting North Korea. Separately, the FBI warned of widespread identity theft. North Korean operatives used stolen American credentials to pose as freelance developers. FBI Assistant Director Roman Rozhavsky urged businesses to scrutinize remote hiring processes.
This seizure is part of the “DPRK RevGen” initiative launched in 2024. The program targets revenue streams funding North Korea’s weapons programs. Earlier actions under this initiative pursued domestic facilitators and crypto traders aiding Pyongyang. The FBI’s Virtual Assets Unit led the investigation with support from cybercrime prosecutors.
