U.S. sanctions North Korean crypto network for $800M fraud

U.S. sanctions hit North Korean crypto network behind $800M fraud, freezing 21 wallets and targeting facilitators in several countries for funding weapons programs.

The U.S. Treasury Department has sanctioned six individuals and two entities linked to a North Korean scheme that generated nearly $800 million in 2024. This operation involved deploying fake tech workers to companies worldwide, including in the United States, using stolen identities and forged documents to secure jobs—primarily in technology and blockchain sectors. Most of the earnings, often paid in cryptocurrencies like Bitcoin and Ethereum, were funneled back to North Korea to support weapons of mass destruction and ballistic missile programs, violating U.S. and United Nations sanctions. The Office of Foreign Assets Control (OFAC) responded by freezing 21 cryptocurrency wallet addresses across multiple blockchain networks. The sanctions also targeted facilitators in North Korea, Vietnam, Laos, and Spain, as well as a Vietnam-based company accused of laundering $2.5 million in crypto. Some workers reportedly installed malware to steal data and demand ransom, highlighting the ongoing use of digital assets in sanctions evasion and international fraud.