US Companies Hit by IT Schemes, Funding Illicit Programs

Federal authorities have exposed North Korean schemes to fund its regime through remote IT work for U.S. companies, leading to indictments, seizures, and an arrest. North Korean actors, aided by individuals in the U.S., China, the UAE, and Taiwan, obtained employment with over 100 U.S. companies.

One scheme involved front companies and laptop farms to facilitate remote access for North Korean IT workers. Another involved using false identities to steal virtual currency from a blockchain company. The DOJ stated these schemes target U.S. companies to evade sanctions and fund illicit programs.

A U.S. national, Zhenxing Wang, was arrested and indicted for obtaining remote IT work and generating over $5 million. Chinese and Taiwanese nationals were also charged. Kejia "Tony" Wang was separately indicted. The defendants compromised identities to secure remote jobs, causing significant financial losses to victim companies.

U.S. facilitators provided laptops and enabled remote access for overseas IT workers, establishing shell companies to legitimize their operations. They received at least $696,000 from the IT workers. The FBI and Defense Criminal Investigative Service seized web domains and financial accounts used for laundering revenue.

Four North Korean nationals were indicted for stealing virtual currency and laundering the proceeds. They used false identities and worked as a team, including being hired by a blockchain company in Atlanta. The FBI is seeking the four suspects. Searches of premises hosting laptop farms resulted in the seizure of 137 laptops.