The U.S. Department of Justice (DOJ) has taken action to attempt to seize $7.74 million in cryptocurrency, allegedly earned by North Korean IT workers using false identities and working as remote contractors for blockchain companies.
According to a statement from the DOJ on June 5, 2025, these funds were initially frozen in April 2023 as part of the prosecution of Sim Hyon Sop, a banker in China who is alleged to have helped North Korean IT workers launder money.
In a civil forfeiture lawsuit filed by the DOJ in federal court in Washington, D.C. on June 5, the DOJ is seeking to seize various cryptocurrencies, including different amounts of stablecoins and Bitcoin (BTC), as well as non-fungible tokens (NFTs) and Ethereum Name Service (ENS) domain names, which are stored in multiple self-custody wallets and Binance accounts.
Matthew Galeotti, head of the DOJ's criminal division, stated that this case highlights how the North Korean government attempts to use the "cryptocurrency ecosystem to fund its illegal priorities."
He said, "The DOJ will use all legal tools at its disposal to protect the cryptocurrency ecosystem and prevent North Korea from profiting illegally in violation of U.S. sanctions."
The DOJ claims that the North Korean IT workers earning this cryptocurrency are active in multiple countries and use forged identification documents and other obfuscation strategies to secure employment opportunities.
It is alleged that these IT workers, after receiving payment (usually in the form of stablecoins like USDC and USDT), employ money laundering techniques, including chain hopping and converting tokens to NFTs, to obscure the source of the funds.
The DOJ alleges that these funds were supposed to be sent back to the North Korean government through Sim and another North Korean individual, Kim Sang Man, who has been sanctioned by the U.S. Office of Foreign Assets Control (OFAC).
In recent years, North Korea has intensified its efforts to infiltrate the cryptocurrency industry and raise funds to send back to this secretive regime.
A report released by Google's threat intelligence team in April detailed how North Korea expanded its infiltration efforts to blockchain companies outside the U.S. after authorities increased scrutiny, with a particular focus on Europe.
Meanwhile, blockchain investigator ZachXBT stated last August that he found evidence showing a complex network of North Korean developers working for "well-known" crypto projects, earning up to $500,000 a month.
In 2022, the U.S. DOJ, State Department, and Treasury Department issued a joint warning about the influx of North Korean workers into various freelance tech jobs, particularly in the cryptocurrency sector.
Related: SEC wins $1.1 million in damages, defendant absent from cryptocurrency fraud trial
Original article: “U.S. Seeks to Seize $7.7 Million in Cryptocurrency Related to North Korean IT Worker Money Laundering Scheme”
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