Key Takeaways:
- The DOJ is seeking to seize $7.74 million in crypto assets linked to North Korean IT workers laundering illicit earnings through blockchain firms.
- Funds were allegedly laundered using chain hopping, stablecoin payments, and NFT conversions before being funneled to the North Korean government.
- This action highlights North Korea’s broader strategy to exploit the crypto sector, including targeting firms outside the U.S. with fake identities.
The U.S. Department of Justice (DOJ) has filed a civil forfeiture complaint to seize $7.74 million in crypto assets tied to a North Korean laundering scheme.
The funds, frozen since April 2023, are linked to Sim Hyon Sop, a China-based banker accused of helping North Korean IT workers launder illicit earnings.
Department Files Civil Forfeiture Complaint Against Over $7.74M Laundered on Behalf of the North Korean Government
— U.S. Department of Justice (@TheJusticeDept) June 5, 2025
🔗: https://t.co/T6nh2ETMYY pic.twitter.com/o23HY6C6Zw
The targeted assets include Bitcoin, stablecoins like USDC and USDT, NFTs, and Ethereum Name Service (ENS) domains, held in self-custody wallets and Binance accounts.
The DOJ alleges these IT workers used fake identities to get remote jobs at blockchain firms worldwide.
Payments received were laundered using techniques like chain hopping and converting tokens into NFTs to obscure origins.
The proceeds were allegedly routed back to the North Korean government through Sim and Kim Sang Man, who is already sanctioned for money laundering.
This case reflects North Korea’s growing infiltration of the crypto sector.
Google’s Threat Intelligence Group noted an uptick in attacks on blockchain firms, especially in Europe.
In 2022, U.S. agencies also warned of North Korean freelancers entering tech and crypto jobs under false pretenses.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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