The US Department of Justice (DoJ) has initiated coordinated actions against North Korean schemes designed to fund weapons programs through remote IT work for American companies.
Justice Department Actions
On Monday, the US Department of Justice issued two indictments, conducted an arrest, executed searches at 29 laptop farms across 16 states, and seized 29 bank accounts used to launder illicit funds. These schemes, the agency stated, are part of efforts by the North Korean regime to generate revenue and engage in cyber-espionage. The investigation follows separate cases believed to pose a threat because, in some instances, workers accessed sensitive proprietary data from the American firms that hired them.
Arrests and Charges
The Attorney’s Office for the District of Massachusetts and the National Security Division announced the arrest of US national Zhenxing "Danny" Wang from New Jersey on five counts. Wang was charged with conspiracy to commit wire and mail fraud, money laundering conspiracy, identity theft conspiracy, and conspiracy to violate the International Emergency Economic Powers Act. The second indictment was against New Jersey resident Kehia "Tony" Wang for similar charges related to a multi-year scheme that generated over $5 million in revenue.
Risks for American Companies
Investigations revealed that the wages from the workers were directed toward North Korean weapons programs in violation of US and UN sanctions. Workers also accessed confidential information from their employers, including military technology and digital assets. In one case, the DOJ discovered that workers used false identities to gain employment at a blockchain research company in Atlanta and stole approximately $900,000 in digital assets.
Coordinated efforts by the Justice Department and FBI underscore the commitment of US authorities to combat cyber threats from North Korea and protect sensitive information of American companies.
