The United States Justice Department has initiated a substantial crackdown on illicit revenue generation by North Korea (DPRK) through a series of recent developments. These actions include several guilty pleas related to fraud and a civil forfeiture pursuit for over $15 million in stolen virtual currency.
Key Developments in North Korean Illicit Activity
- Five individuals recently pleaded guilty to charges linked to schemes benefitting the DPRK.
- A total of over $15 million worth of virtual currency has been seized and is subject to forfeiture.
- The Justice Department is targeting both North Korean remote IT schemes and hacking operations.
Guilty Pleas and Their Implications
In a major U.S. District Court session in Georgia, three nationals—Audricus Phagnasay, Jason Salazar, and Alexander Paul Travis—admitted to conspiring to commit wire fraud. Their fraudulent activities spanned from September 2019 to November 2022 and involved creating deceptive employment scenarios for North Korean IT workers.
These individuals’ actions affected over 136 U.S. companies and contributed $2.2 million in revenue to the North Korean regime. The FBI is currently investigating these cases.
International Collaboration in Combating Fraud
Ukrainian national Oleksandr Didenko also faced charges in conjunction with his schemes that involved selling U.S. identities to North Korean IT workers. His actions led to hundreds of thousands of dollars in payments from fraudulent contracts with 40 U.S. companies. He has agreed to forfeit $1.4 million, which includes a combination of fiat and virtual currencies.
Additional Cases and Their Global Reach
Another defendant, Erick Ntekereze Prince, recently pleaded guilty in Florida. His operations spanned June 2020 to August 2024, involving the provision of fake IT services to American firms. This scheme yielded over $943,000 in salary payments, with the majority funneled to overseas IT workers.
Forfeiture Actions Against Stolen Virtual Currency
Two civil complaints have been filed to recover approximately $15 million in USDT, a stablecoin, seized from North Korean actors earlier this year. These funds are linked to a series of high-profile thefts, including:
- July 2023: Approximately $37 million stolen from an Estonia-based platform.
- July 2023: A theft of $100 million from a Panama-based processor.
- November 2023: Approximately $138 million taken from a Panama-based exchange.
- November 2023: $107 million stolen from a Seychelles-based exchange.
The ongoing efforts highlight the Justice Department’s commitment to combating North Korean illicit activities. Authorities stress the importance of collaboration between government agencies and private sector partners to enhance security and thwart these schemes.
Continued Vigilance Required
Officials urge all U.S. companies to strengthen their security measures against potential fraud risks associated with remote workers. The FBI emphasizes that any involvement in North Korean illicit activities could result in legal consequences, reinforcing the United States’ resolve to protect its economic interests.
The fight against North Korean-sponsored fraud continues as investigations reveal persistent attempts to undermine American security through illicit revenue channels. The Justice Department remains dedicated to disrupting these schemes and ensuring justice for the affected parties.
