New - DOJ Busts North Korean IT Fraud: Five Plead Guilty
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North Korea, an isolated nation governed by a totalitarian regime, remains one of the world’s most impoverished countries. The legacy of its communist system has led to widespread deprivation and hunger among its people, sparing only the nation’s elite, such as its leader, Kim Jong Un. In recent years, North Korea has been exploring alternative methods to bolster its economy and generate much-needed revenue.

However, these efforts have not been without complications.

While the intricacies of virtual currencies may elude many, the U.S. Justice Department has experts who are well-versed in the digital landscape, often staying a step ahead of cybercriminals. The North Korean regime, known for its audacious ventures, has been no exception in its attempts to exploit cryptocurrency.

It’s likely that DOJ tech specialists are actively working on strategies to counter North Korea’s digital efforts, potentially by disrupting their servers or deploying malware—measures that would be both effective and ironically satisfying.

The reality is, despite its portrayal as a tragicomic regime, North Korea remains a significant threat due to its possession of nuclear weapons.

First, as described in court documents associated with the guilty pleas, facilitators in the United States and Ukraine assisted North Korean actors with obtaining remote IT employment with U.S. companies. For example, the facilitators’ provided their own, false, or stolen identities, and hosted U.S. victim company-provided laptops at residences across the United States to create the false appearance that the IT workers were working domestically. In total, these defendants’ fraudulent employment schemes impacted more than 136 U.S. victim companies, generated more than $2.2 million in revenue for the DPRK regime, and compromised the identities of more than 18 U.S. persons.

Second, as described in the two civil forfeiture complaints, a North Korean military hacking group known to the private sector as Advanced Persistent Threat 38 (APT38) carried out multimillion-dollar virtual currency heists at four overseas virtual currency platforms in 2023. While APT38 actors continued to launder their ill-gotten gains for these heists, the U.S. government froze and seized more than $15 million worth of virtual currency that it now seeks to forfeit for eventual return to the rightful owners.





It’s a safe bet that some DOJ computer mavens are now working on back-hacking (is that still a term that computer people use) the North Korea efforts, maybe to shut down some servers, possibly plant some viruses – that would be an appropriate response, in addition to being pretty amusing.

Here’s the thing: North Korea is a sad, comic-opera nation – but they have nuclear weapons.




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