North Korean Crypto Laundering Scheme Uncovered: DOJ Seizes $7.7M in Stablecoins via Fake Tech Jobs

U.S. authorities have exposed a major North Korean cryptocurrency laundering scheme, seizing $7.7 million in digital assets. The Department of Justice revealed that North Korean IT operatives secured remote blockchain-related jobs at international companies using stolen or fabricated U.S. identities, bypassing KYC protocols at crypto exchanges. Wages were paid in stablecoins such as USDC and USDT, then laundered through self-hosted wallets, chain-hopping, cryptocurrency swaps, NFTs, and Ethereum Name Service domains. Over 84 exchange accounts, created with fake documents and recycled devices, helped obscure money trails. Laundered funds were routed globally through countries including Russia, Malaysia, and the UAE, eventually ending up in wallets controlled by sanctioned North Korean entities. Key figures included Sim Hyon Sop from North Korea’s Foreign Trade Bank and Kim Sang Man, CEO of Chinyong IT Cooperation Company. U.S. authorities warn that North Korea continues to exploit weaknesses in KYC and transaction monitoring, posing persistent risks to crypto exchanges and traders. The operation demonstrates advances in blockchain forensics but highlights the need for real-time analytics and tighter compliance oversight. The U.S. plans expanded sanctions targeting exchanges unintentionally facilitating these flows. For crypto traders, this underscores increased regulatory focus on stablecoins, NFTs, and anti-money laundering protocols, signaling greater enforcement risks for lax platforms.