U.S. DOJ Cracks Down on North Korea's Illicit Crypto Operations with New Convictions and Seizures
The U.S. Department of Justice (DOJ) recently announced several new convictions and cryptocurrency seizures linked to North Korean illicit financial activities. Among these actions was the seizure of $15 million in USDT connected to North Korea-linked cyber heists conducted by the hacking group APT38. Five individuals pleaded guilty to aiding North Korea by acquiring U.S. IT jobs, stealing U.S. identities, and obscuring the origins of workers to receive payments from numerous U.S. companies.
Officials from the FBI highlighted that North Korea’s ongoing campaign aims to circumvent U.S. sanctions and fund the regime along with its weapons programs. They have urged for stronger vetting processes of remote workers to reduce such risks.
The DOJ's latest crypto seizures are part of a continuing crackdown on North Korea’s illicit finances. On the same Friday as the USDT seizure, federal agencies also launched a Scam Center Strike Force targeting pig-butchering scams, successfully recovering approximately $80 million in stolen funds. These recovered assets are slated to compensate victims of the scams.
Additionally, officials noted that some of the seized cryptocurrency could potentially be used within proposed U.S. crypto reserve initiatives, including a Bitcoin strategic reserve and a separate digital assets reserve. The formal establishment of these reserves may require congressional approval.
