US DoJ Moves to Seize $7.7M Linked to North Korean Crypto Laundering Case

Recently, the US Department of Justice (DoJ) filed a complaint in a US District Court in Columbia to forfeit over $7.74 million in crypto linked to North Korean laundering activities.

In a press release published on 5 June 2025, the DoJ threw light on a broader scheme in which North Korean IT workers obtained illegal employment in the US or other international companies by providing fraudulent identification documents.

The DOJ’s action in this instance stems from a particular case from 2023. In this case Sim Hyon Sop, a representative of North Korea’s Foreign Trade Bank, facilitated the transfer of millions of dollars raised by illegal North Korean IT workers.

Subsequently, the US authorities were able to jump in and salvage the situation by freezing and then seizing the funds when North Korean operatives tried to launder the amount.

US Moves to Seize $7.74M Crypto in North Korean Laundering Scheme!

KEY DETAILS:

DOJ targets $7.74M in crypto + NFTs held in self-custody wallets/Binance accounts.

Funds linked to North Korean IT workers using fake identities to infiltrate blockchain firms as remote…

— Bitcoin Weirdo (@Bitcoin_Weirdo) June 6, 2025

Matthew R Galeotti, the head of the Justice Department’s Criminal Division, said, “This forfeiture action highlights, once again, the North Korean government’s exploitation of the cryptocurrency ecosystem to fund its illicit priorities.”

“The department will use every legal tool at its disposal to safeguard the cryptocurrency ecosystem and deny North Korea its ill-gotten gains in violation of US sanctions,” he added.

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Technicalities of the North Korean Crypto Laundering Operations

According to the complaint filed by the DoJ, the North Korean IT workers concealed their location. They sidestepped security protocols followed by various companies by using illegally obtained identification documents.

Furthermore, these workers received their compensation in stablecoins pegged to the USD and transferred them back to North Korea through various techniques. They created an account using a fake identity, transfer funds in small amounts, convert the funds into different cryptocurrencies, and buy NFTs to conceal their assets, among other methods.

Additionally, these North Korean IT scammers also employed individuals such as North Korea’s Foreign Trade Bank representative Sop and the US-sanctioned Kim Sang Man, the Chief Operating Officer of Chinyong IT Cooperation Company, allegedly a front for Pyongyang’s Ministry of Defence.

The DoJ launched its DPRK (The Democratic People’s Republic of Korea) RevGen initiative in 2024.  The DoJ made multiple arrests, indictments, and seizures in connection with North Korean perpetrators raising funds for the country’s military projects, leading to the forfeiture complaint.

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Washington’s Renewed Crackdown on Money Laundering 

The complaint filed by the DoJ signifies a renewed vigour in the US authorities to sanction North Korean money laundering activities.

US Attorney Jeanine Ferris Pirro for the District of Columbia said, “Crime may pay in other countries, but that’s not how it works here. Sanctions are in place against North Korea for a reason, and we will diligently investigate and prosecute anyone who tries to evade them.”

North Korean hackers have recently begun to integrate AI into their operating procedures to craft more sophisticated schemes, leading Google and OpenAI to remove North Korean-linked accounts.

Allegedly, the North Korean scammers automated resume creation, job applications and researching the establishment of laptop farms in coordination with intermediaries to facilitate their remote jobs.

On 5 June 2025, OpenAI reconfirmed its plans to ban accounts suspected of deceptive employment schemes by crafting fake profiles and personas with fake employment histories.

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