US Treasury Department Sanctions 6 North Korean IT Workers, 2 Entities in Fraud Network Involving $2.5 Million in Cryptocurrency Laundering

Gate News reports that on March 13, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against six individuals and two entities, accusing them of participating in an IT worker fraud scheme orchestrated by North Korea, with the proceeds used to fund North Korea’s weapons programs.

The sanctioned entities include North Korean company Amnokgang Technology Development Company and Vietnamese company Quangvietdnbg International Services Company Limited, whose CEO Nguyen Quang Viet is accused of laundering $2.5 million through cryptocurrency for the network. Do Phi Khanh, Hoang Van Nguyen, Yun Song Guk, Hoang Minh Quang, and York Louis Celestino Herrera are also sanctioned for their alleged involvement in the network. The fraud network operates in North Korea, Vietnam, Laos, and Spain.

The sanctions freeze all assets of the individuals and entities in the U.S. and prohibit any financial transactions or business dealings with them. OFAC also listed 21 cryptocurrency addresses on the Ethereum and Tron networks for sanctions.

Chainalysis states that North Korea’s IT worker fraud scheme relies on stolen and fictitious identities to obtain positions in global companies and may implant malware in company networks to steal sensitive information.