US Delivers Double Whammy: Sanctions on DPRK Cyber Ops & OmegaPro Founders Charged in Multi-Million Scam

The US government just dropped a one-two punch—crippling DPRK's cyber warfare ops while dismantling OmegaPro's global Ponzi scheme. Here's the fallout.

Cyber Crackdown: Washington's sanctions target North Korea's shadowy hacker armies, accused of bankrolling missiles with stolen crypto. No more Lazarus Group shopping sprees.

Scam Unraveled: OmegaPro's 'revolutionary trading platform'? A $200M fantasy. Founders now face charges for fleecing investors with the oldest trick in the book—promising Lambos, delivering bankruptcy.

Meanwhile, Wall Street hedge funds still can't tell a blockchain from a Excel spreadsheet. Some things never change.

Treasury Targets DPRK Cyber Actor

According to the official press release, Song oversaw operations in which DPRK nationals, often based in China and Russia, were provided with falsified identities. These identities helped them secure employment at unwitting companies across the world, including in the US.

The workers WOULD pose as foreign or US nationals using stolen names, Social Security numbers, and addresses to gain remote jobs. They generated income that was shared with the accused and remitted to the DPRK to support its weapons and ballistic missile programs.

OFAC stated that some DPRK IT workers also introduced malware into company networks for further exploitation.

In addition to Song, OFAC also sanctioned a Russian national Gayk Asatryan and four entities for facilitating a Russia-based IT worker pipeline to employ North Korean workers. Asatryan, who owns Asatryan LLC and Fortuna LLC, allegedly signed contracts with DPRK entities Korea Songkwang Trading General Corporation and Korea Saenal Trading Corporation in 2024 to dispatch up to 80 DPRK IT workers to Russia.

The Treasury added that the DPRK maintains thousands of skilled IT workers globally who, under false identities, target employers in wealthier countries, using freelance and crypto platforms to earn and launder funds back to Pyongyang.

OFAC stated that the actions are part of broader efforts to tackle North Korea’s revenue generation through cyber espionage and illicit labor, which directly support its prohibited weapons programs.

DOJ Acts on OmegaPro Crypto Scam

As the US cracks down on crypto-related crimes, authorities have charged OmegaPro founders Michael Shannon Sims and Juan Carlos Reynoso. They allegedly defrauded investors of over $650 million with false promises of high returns in crypto and forex trading.

Sims, 48, and Reynoso, 57, claimed that investors would receive 300% returns in 16 months using elite traders. Victims, who often used cryptocurrency, were misled about the safety of their funds and OmegaPro’s legitimacy.

The Justice Department stated the defendants targeted vulnerable individuals globally, including in Puerto Rico, to enrich themselves. They also hosted lavish promotional events and showcased luxury lifestyles on social media to attract investors.

Authorities allege OmegaPro funneled victim funds through cryptocurrency wallets controlled by insiders to conceal the scheme’s profits. In 2023, after claiming a network hack, OmegaPro transferred victim accounts to another platform, but investors could not recover their money.

Sims and Reynoso each face charges of conspiracy to commit wire fraud and money laundering, carrying up to 20 years in prison per count.