In Georgia, four North Korean citizens have been charged with wire fraud and money laundering after stolen near $1 million in cryptographic form at US and Serbian blockchain companies, prosecutors said.
According to the US Department of Justice (DOJ), Kim Kwang Jin, Kang Tae Bok, Jong Pong Ju and Chang Nam Il posed as remote IT developers using fake and stolen identities to hide North Korea’s citizenship.
The group initially opened in 2019 from the United Arab Emirates before securing employment at Atlanta-based blockchain startups and Serbian virtual token companies between late 2020 and mid-2021.
Prosecutors say Kim and John are calling them a “unique threat” for companies employing remote IT workers by tactical US lawyer Theodore S. Hertzberg, to secure their position by submitting fraudulent documents containing stolen and manufactured IDs.
Related: North Korea targets crypto workers and targets malware that steals new information
Four North Koreans steal $915,000 with code
Upon entering, the defendant used privileged access to steal a substantial amount. In February 2022, John sipped around $175,000 in code. The following month, Kim exploited the source code of the smart contract and stole $740,000.
The stolen funds were then washed through a mixer and sent to an exchange account managed by Kang and Chang.
“These schemes are designed to target and steal American businesses, avoid sanctions, and fund the North Korean regime’s illegal programs, including the arms program,” said National Security Attorney General John A. Eisenberg.
The incident is part of DOJ’s DPRK Revgen: Domestic Enabler Initiative, a programme targeting 2024 North Korea’s illegal revenue streams and US-based enablers.
Related: North Korean hackers establish three shell companies to fraudulent crypto developers
DOJ cracks down on North Korea’s crypto fraud
In another case, federal agents carried out coordinated raids in 16 states, seizing nearly 30 financial accounts, over 200 fraudulent websites, and around 200 computers from what is called “laptop farms,” making it seem as if North Korean operatives were working from the United States.
The DOJ announced on Sunday that North Korean IT workers, who used stolen identities to acquire jobs in more than 100 American companies, concentrated millions in Pyongyang and even access sensitive military data, have involved North Korean IT workers pretending to be US citizens.
Last month, DOJ filed a civil forfeiture complaint to seize $7.74 million in codes allegedly acquired by North Korean IT workers who used fake identities to be disguised as remote blockchain contractors.
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