In an effort to enhance security and legal compliance in the cryptocurrency market, the U.S. Department of Justice (DOJ) is vigorously cracking down on a network of programmers and IT staff from North Korea. The DOJ accuses this group of having "earned" millions of dollars in cryptocurrency by using fake identities and working remotely for global blockchain companies, then laundering the money and transferring it back to the Pyongyang government, which is under heavy international sanctions.

On June 5, #DOJ submitted a civil lawsuit to the federal court in Washington, D.C., seeking the seizure of $7.74 million in the form of stablecoins, Bitcoin, NFTs, and Ethereum Name Service domains. This amount has been frozen since April 2023, related to the prosecution of Sim Hyon Sop, a bank employee in China accused of aiding money laundering for North Korea.

The Department of Justice emphasized that the programmers used many sophisticated tricks such as fake documents, virtual identities, and "chain hopping" to cover up money laundering traces. After receiving salaries mainly in $USDC and USDT, they exchanged tokens and even converted them to NFTs to erase traces, then transferred money back to North Korea through sanctioned individuals.

Mr. Matthew Galeotti, head of the Criminal Division at the DOJ, stated: "This case clearly exposes how the North Korean government is exploiting the cryptocurrency ecosystem to fund its illegal priorities." He affirmed that the DOJ will use all legal tools to protect the cryptocurrency industry and prevent North Korea from obtaining illicit profits, violating sanctions.

This is not an isolated operation. Recent reports show that North Korea is scaling up its infiltration into the crypto industry, even shifting its focus to blockchain companies in Europe after being closely monitored in the U.S. These findings, along with the United Nations' estimate that North Korean hackers stole more than $1 billion in cryptocurrency in 2022, further affirm the complexity of this threat.

The DOJ's proactive crackdown and freezing of assets related to sophisticated money laundering activities is a positive signal, demonstrating the U.S. government's efforts to maintain the security and integrity of the cryptocurrency market. This contributes to strengthening investor confidence and promoting the sustainable development of the industry in the long term.

The information in this article is for reference only and should not be considered investment advice. #anhbacong