The U.S. Department of Justice has charged four North Korean nationals for involvement in a scheme that stole nearly $1 million in cryptocurrency.
Charges and Defendants
The defendants include Kim Kwang Jin, Kang Tae Bok, Jong Pong Ju, and Chang Nam Il. They allegedly posed as blockchain developers using stolen or fake documents to conceal their citizenship.
The Cryptocurrency Theft Scheme
Beginning operations in the UAE in 2019, they later secured jobs at a blockchain startup in Atlanta and a token platform in Serbia between late 2020 and mid-2021. U.S. prosecutors claim Kim and Jong submitted fabricated documents to obtain their positions. In early 2022, Jong siphoned off $175,000 worth of cryptocurrency, and a month later, Kim exploited vulnerabilities in smart contracts to steal an additional $740,000. The laundered funds were funneled through crypto mixers and sent to wallet addresses controlled by Kang and Chang, who allegedly registered exchange accounts using fake Malaysian IDs.
DOJ Initiatives
The charges are part of the DOJ's broader DPRK RevGen: Domestic Enabler Initiative. Recently, federal agents seized nearly 30 financial accounts, 200 laptops, and over 20 fake websites across the country in a sweep targeting 'laptop farms' used by North Korean operatives.
This case underscores the need for heightened vigilance among blockchain companies hiring global talent as it may be part of a scheme to bypass international sanctions.
