United States seizes $7.44 million in North Korean crypto scam
June 5 (UPI) -- The Justice Department has seized more than $7.74 million dollars related to an illegal employment and cryptocurrency scheme operated by North Korea, officials announced Thursday.
The complaint, filed in the U.S. District court in Washington, alleges that IT workers were illegally hired and collected cryptocurrency for the North Korean government as a way to avoid sanctions imposed by the United States.
"This forfeiture action highlights, once again, the North Korean government's exploitation of the cryptocurrency ecosystem to fund its illicit priorities," Matthew R. Galeoti, director of the Justice Department's criminal division, said in a release. "The department will use every legal tool at its disposal to safeguard the cryptocurrency ecosystems and deny North Korea all its ill-gotten gains in violation of U.S. sanctions."
The Justice Department said North Korean workers used false identities to obtain employment with U.S.-based companies, often remotely, as a way to avoid sanctions and illegally obtained cryptocurrency, which they then sent back to North Korea.
"Those IT workers have generated revenue for North Korea via their jobs at, among other places, blockchain development companies," the Justice Department release continued.
To send the cryptocurrency to North Korea, the IT workers allegedly laundered it by setting up accounts with fictitious names, sending funds in small amounts, converting funds or moving them to other blockchains or converting them to other forms of currency. They also allegedly commingled their funds with other money to hide their origins.
Earlier this year, the FBI issued guidelines on how to recognize extortion and theft of sensitive company data, and offered rules on how to address it.
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