U.S. Department of Justice Makes Important Cryptocurrency Announcement

The United States Department of Justice (DOJ) has seized $7.74 million in cryptocurrency illegally obtained by North Korean IT workers. The department filed a civil forfeiture lawsuit with the Washington, DC District Court, saying the funds were used to evade U.S. sanctions and finance North Korea’s weapons programs.

North Korean IT experts began working remotely for international companies under false identities, using cryptocurrency revenues to serve the interests of the Pyongyang regime, helping to circumvent sanctions and fund illegal weapons projects, according to the Justice Ministry.

The seizure was initiated in connection with the indictment prepared in April 2023 against Sim Hyon Sop, a representative of the North Korea Foreign Trade Bank. Sim was alleged to have worked with IT employees and tried to launder illegal profits. However, American authorities managed to freeze and seize the funds in question in the process.

“This seizure further highlights North Korea’s use of the cryptocurrency ecosystem for illicit purposes,” said Matthew R. Galeotti, Director of the Justice Department’s Criminal Division. “We will continue to use all legal means to protect the crypto space and prevent North Korea from using its illicit profits.”

“North Korea has been known for years to use global IT services and cryptocurrency systems for its own weapons projects. This multimillion-dollar seizure demonstrates DOJ’s commitment to disrupting these illicit financial systems,” said Sue J. Bai, director of the National Security Agency.

*This is not investment advice.