The United States seeks to confiscate $ 7.7 million in encryption associated with North Korea IT workers
The US Department of Justice (Doj) submitted a civil confiscation complaint seeking to seize about $ 7.74 million of cryptocurrencies that are allegedly linked to a scheme that includes information technology workers in North Korea.
According to June 5 press release From the Ministry of Justice, the money was obtained by workers from remote use of forged identities to obtain work in related companies.
These individuals, who are working on behalf of the North Korean government, are said to have used the ecosystem for encryption to evade US sanctions and transfer illegal gains into the Democratic People’s Republic of Korea (DPRK).
Reunction and Blockchain companies and laundry tactics
Frozen funds are linked to the continuous investigation that started an indictment in April 2023 against Sim Hyun Sop, a Chinese -based representative of the North Korea Foreign Trade Bank.
SIM is accused of working alongside North Korea IT professionals for washing returns through many tactics. US officials say the seized funds are part of a wider effort by the North Korean government to use the infrastructure of the global cryptocurrency to generate revenues in challenging international sanctions.
According to the complaint of the Ministry of Justice, DPRK has increasingly published information technology workers across the judicial states including China and Russia, as they directed them to find work in the Blockchain sectors and technology.
It is claimed that these workers have exceeded the Kyc (KYC) procedures and due care procedures using stolen or forged documents to hide their identities and locations. Their work, which is often compensated in Stablecoins such as USDC or USDT, has been born in the end and was directed to North Korea.
To hide the origin of the money, it is claimed that workers participate in a variety of laundry techniques: opening fake identity accounts, carrying out multiple small transfers, switching between Blockchains (“Series Jump”), converting assets into different encrypted currencies (“symbol exchange”), and perhaps even buy non -playable agencies (Nofts).
According to what was reported, the returns were transferred through the platforms based on the United States via the Internet and find them to avoid detection, before moving to North Korea’s entities through mediators such as SIM and Kim Sang Man.
Global coordination aims to evade sanctions
Kim Sang Man, who was named in the file of the Ministry of Justice is the CEO of Chinyong (also known as Jinyong IT Collegeration Compa), which works under the North Korea Ministry of Defense.
Chinyong is punished by the US Treasury and is said to manage the delegations of IT on North Korea in countries such as Russia and Laos.
Kim’s role involves transferring funds from IT workers to SIM, thus completing the coding course to the North Korean government.
The issue is a broader strategic focus by American agencies to disable illegal financing networks. Officials from the Ministry of Justice, FBI libraries and national security offices confirmed that targeting digital revenue flows in North Korea is necessary to impose sanctions and reduce the funds available for military development.
American companies were also notified of a remote recruitment practices to detect potential jamming tactics that foreign actors can use.
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