US Imposes Sanctions on North Korean Tech Workers in Crypto Fraud Case
- Treasury sanctions target North Korean IT infiltration network, freezing assets of individuals placing fraudulent workers.
- North Korea shifts from direct hacking to deceptive worker placement, stealing $1.6 billion in early 2025.
The United States Treasury Department has sanctioned individuals and organizations that are associated with North Korean IT worker activities. These sanctions are against an advanced network that infiltrates American crypto firms with fraudulent employees to make money. This move by the Treasury is the most recent attempt to fight the changing cyber warfare strategies of North Korea in the digital asset arena.
North Korean Hackers Change Tactics to Infiltrate Workers
The North Korean hackers are also leaving the old ways of hacking and opting to use fake job offers to Western businesses. Song Kum Hyok, a North Korean citizen, was sanctioned by the Treasury Office of Foreign Assets Control, who is accused of stealing American identities.
These stolen identities were reportedly given to foreign IT workers who, in turn, tried to find work in US cryptocurrency companies. Russian national Gayk Asatryan was also sanctioned because of hiring dozens of North Korean IT workers by his companies.
The sanctions block all US assets that are related to the designated individuals and Americans are not allowed to do business with them. Deputy Secretary of the Treasury Michael Faulkender highlighted the government is determined to interfere with the sanctions evasion activities of North Korea by stealing digital assets. It is also reported that North Korea is using thousands of highly skilled IT workers across the globe, mainly in China and Russia, to finance ballistic missile development.
Blockchain surveillance powerhouse TRM Labs has unveiled that North Korean state-backed cyber criminals have stolen $1.6 billion in digital assets in early 2025. Out of 75 separate crypto incidents that collectively drained $2.1 billion in the first half of 2025, these breaches accounted for nearly 70% of all losses. TRM Labs, however, observes that North Korean activities are moving to deception-based revenue generation instead of direct exchange violations.
In 2025, the US authorities have stepped up the crackdown on fraudulent North Korean IT worker schemes. In June, four North Korean citizens were charged with wire fraud and money laundering for impersonating remote workers. The Justice Department also acted to confiscate $7.74 million in cryptocurrency that North Korean IT workers had supposedly gained under false identities.
Such enforcement activities underscore the increasing sophistication of North Korean cyber activities and their response to new sources of revenue. The sanctions are an indication of the American will to fight against these changing threats to national security and financial systems.
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US Imposes Sanctions on North Korean Tech Workers in Crypto Fraud Case
- Treasury sanctions target North Korean IT infiltration network, freezing assets of individuals placing fraudulent workers.
- North Korea shifts from direct hacking to deceptive worker placement, stealing $1.6 billion in early 2025.
The United States Treasury Department has sanctioned individuals and organizations that are associated with North Korean IT worker activities. These sanctions are against an advanced network that infiltrates American crypto firms with fraudulent employees to make money. This move by the Treasury is the most recent attempt to fight the changing cyber warfare strategies of North Korea in the digital asset arena.
North Korean Hackers Change Tactics to Infiltrate Workers
The North Korean hackers are also leaving the old ways of hacking and opting to use fake job offers to Western businesses. Song Kum Hyok, a North Korean citizen, was sanctioned by the Treasury Office of Foreign Assets Control, who is accused of stealing American identities.
These stolen identities were reportedly given to foreign IT workers who, in turn, tried to find work in US cryptocurrency companies. Russian national Gayk Asatryan was also sanctioned because of hiring dozens of North Korean IT workers by his companies.
The sanctions block all US assets that are related to the designated individuals and Americans are not allowed to do business with them. Deputy Secretary of the Treasury Michael Faulkender highlighted the government is determined to interfere with the sanctions evasion activities of North Korea by stealing digital assets. It is also reported that North Korea is using thousands of highly skilled IT workers across the globe, mainly in China and Russia, to finance ballistic missile development.
Blockchain surveillance powerhouse TRM Labs has unveiled that North Korean state-backed cyber criminals have stolen $1.6 billion in digital assets in early 2025. Out of 75 separate crypto incidents that collectively drained $2.1 billion in the first half of 2025, these breaches accounted for nearly 70% of all losses. TRM Labs, however, observes that North Korean activities are moving to deception-based revenue generation instead of direct exchange violations.
In 2025, the US authorities have stepped up the crackdown on fraudulent North Korean IT worker schemes. In June, four North Korean citizens were charged with wire fraud and money laundering for impersonating remote workers. The Justice Department also acted to confiscate $7.74 million in cryptocurrency that North Korean IT workers had supposedly gained under false identities.
Such enforcement activities underscore the increasing sophistication of North Korean cyber activities and their response to new sources of revenue. The sanctions are an indication of the American will to fight against these changing threats to national security and financial systems.
Highlighted Crypto News Today:
With a 17% Surge and 140% Volume Boom, Is Mog Coin (MOG) Set to Take Off?
Read More