Justice Department Announces Actions to Combat North Korean Remote IT Workers

Summary

Note: This press release has been updated to reflect new information regarding the guilty plea of one defendant in the District of Massachusetts.The Justice Department announced today coordinated actions against the Democratic People’s Republic of North Korea (DPRK) government’s schemes to fund its regime through remote information technology (IT) work for U.S. companies. These actions include two indictments, an information and related plea agreement, an arrest, searches of 29 known or suspected “laptop farms” across 16 states, and the seizure of 29 financial accounts used to launder illicit funds and 21 fraudulent websites.According to court documents, the schemes involve North Korean individuals fraudulently obtaining employment with U.S. companies as remote IT workers, using stolen and fake identities. The North Korean actors were assisted by individuals in the United States, China, United Arab Emirates, and Taiwan, and successfully obtained employment with more than 100 U.S. companies.As alleged in court documents, certain U.S.-based individuals enabled one of the schemes by creating front companies and fraudulent websites to promote the bona fides of the remote IT workers, and hosted laptop farms where the remote North Korean IT workers could remote access into U.S. victim company-provided laptop computers. Once employed, the North Korean IT workers received regular salary payments, and they gained access to, and in some cases stole, sensitive employer information such as export controlled U.S. military technology and virtual currency. In another scheme, North Korean IT workers used false or fraudulently obtained identities to gain employment with an Atlanta, Georgia-based blockchain research and development company and stole virtual currency worth approximately over $900,000.“These schemes target and steal from U.S. companies and are designed to evade sanctions and fund the North Korean regime’s illicit programs, including its weapons programs,” said Assistan...