U.S. DOJ Cracks Down on North Korea’s Illicit Cryptocurrency Operations

The DOJ convicted five individuals aiding North Korea’s fraudulent U.S. employment schemes to fund its regime.

Authorities seized $15M in cryptocurrency linked to North Korean cybercriminals, disrupting their global financial access.

The DOJ’s new Scam Center Strike Force focuses on dismantling international crime syndicates involved in “pig-butchering” scams.

The U.S. Department of Justice (DOJ) has ramped up efforts to combat North Korea’s ongoing illicit financial activities, particularly involving cryptocurrency. In a recent announcement, the DOJ revealed several convictions related to North Korean schemes aimed at acquiring large amounts of cryptocurrency. This move highlights the growing concern over North Korea’s efforts to bypass international sanctions and fund its government and military programs.

Fraudulent Employment Schemes Uncovered

The DOJ’s latest actions are linked to five individuals who pleaded guilty for their roles in helping North Korea exploit the U.S. job market. These individuals assisted in securing fraudulent information technology (IT) positions for North Korean workers. The workers were able to obtain stolen U.S. identities, allowing them to appear as legitimate employees of U.S. companies while receiving paychecks.

The places where the workers were located were hidden, which allowed them to avoid being found out. The government has pointed out that the FBI’s investigations, which are still going on, are revealing the North Korean regime’s continued attempts to bypass US sanctions and obtain money. Along with the convictions, the DOJ managed to make remarkable progress in confiscating the cryptocurrency assets associated with North Korea’s illegal cyber activities

On Friday, the authorities took roughly $15 million in Tether (USDT), which is a stablecoin, that is thought to be related to North Korean cyber thefts. These assets are associated with the infamous hacking group Advanced Persistent Threat 38, which is said to be operating under the North Korean army’s command. The seizures are within a larger plan to hinder North Korea’s cyber operations and cut off its access to the world’s financial reserves.

Ongoing Investigations and New Initiatives

The DOJ’s actions come as part of its broader efforts to combat international cybercrime and financial crimes. In recent days, the DOJ also announced the formation of a Scam Center Strike Force. This initiative aims to dismantle criminal organizations involved in so-called “pig-butchering” scams, which are often run by Chinese criminal groups in Southeast Asia. The DOJ reported that $80 million in stolen funds had been seized as part of this operation.

The future of the seized cryptocurrency assets remains uncertain. Although former President Donald Trump directed the creation of a strategic reserve to hold digital assets seized from criminal activities, it is unclear how much of these funds will go into the U.S. government’s reserves. The establishment of a Bitcoin reserve, alongside a separate digital asset reserve, would require congressional approval to become official.DOJ stays loyal to sanctions enforcement and disbanding North Korea’s financial activities while still investigating. The current activities highlight the widespread problem of illegal financial transactions that move through different continents and criminal groups, which are hard to tackle globally.