US Seeks Forfeiture of $7.7M in Crypto Linked to North Korean IT Workers

The U.S. Department of Justice is moving to seize $7.74 million in cryptocurrency tied to North Korean IT workers who allegedly used falsified identities to secure jobs at blockchain firms. These funds, part of a broader sanctions-evasion scheme, were funneled back to the Pyongyang regime.

Authorities allege the workers exploited the crypto ecosystem to launder proceeds, bypassing know-your-customer protocols. The case stems from a 2023 indictment against Sim Hyon Sop, a China-based operative accused of coordinating the operation for North Korea's Foreign Trade Bank.

This action underscores growing concerns about state-sponsored crypto laundering. The DPRK has systematically deployed IT workers across borders, embedding them in tech sectors to generate illicit revenue streams.