The US Department of Justice has initiated proceedings to seize $7.7 million in cryptocurrency, accusing its use in financing the North Korean government through deceptive means.
Lawsuit for Cryptocurrency Seizure
Federal authorities have filed a civil lawsuit to seize $7.7 million in cryptocurrency. The US Department of Justice asserts that these funds were obtained from North Korean IT personnel using false identities to secure remote work at tech firms.
Links to North Korean Officials
The lawsuit identifies Sim Hyon Sop, a representative of North Korea's Foreign Trade Bank, who has faced prior sanctions. Court documents allege he coordinated with Kim Sang Man, CEO of Chinyong, an IT company linked to North Korea's Ministry of Defense.
Funding Methods and Deception
Workers employed layered tactics to obscure transactions, including splitting payments, swapping tokens, and purchasing NFTs. Funds then moved through intermediary platforms back to state accounts. Matthew Galeotti from the DOJ's Criminal Division stated that the operation exploited cryptocurrency systems to support North Korea.
This case is part of the 'DPRK RevGen' initiative aimed at disrupting financial channels supporting North Korea's weapons programs.
