North Korea Laundered $7.7M in Crypto Through Fake IT Workers and AI Tools, DOJ Reveals

The U.S. Department of Justice seized $7.74 million in cryptocurrency allegedly laundered by North Korean operatives posing as remote IT workers. The scheme exploited stablecoins and NFTs to bypass sanctions, with funds routed through sanctioned intermediaries like Sim Hyon Sop and Kim Sang Man.

Fake resumes and AI tools like ChatGPT were used to automate job applications and craft fraudulent employment histories. Payments were received in dollar-pegged stablecoins, then laundered through token conversions, NFT purchases, and small-amount transfers to evade detection.

The operation highlights North Korea's growing sophistication in leveraging crypto markets and emerging technologies to fund weapons programs. Stablecoins' role in cross-border payments continues to attract both legitimate users and bad actors seeking to circumvent traditional financial controls.