U.S. Seizes $15M in Crypto as Five Plead Guilty in North Korea Revenue Crackdown
U.S. Justice Department announces $15M crypto seizure and five guilty pleas tied to North Korea’s illicit revenue schemes targeting 136...
Quick overview
- The Justice Department has initiated a major enforcement effort against North Korea's covert revenue operations, resulting in five guilty pleas and over $15 million in seized virtual currency.
- Fraudulent employment schemes involving North Korean IT workers affected more than 136 U.S. companies and generated over $2.2 million for the DPRK regime.
- The initiative, part of the DPRK RevGen: Domestic Enabler Initiative, aims to dismantle networks supporting North Korea's cyber operations and illicit revenue streams.
- Authorities are urging U.S. companies to enhance verification procedures for remote employees to combat emerging cyber risks.
The Justice Department has launched one of its most sweeping enforcement efforts against North Korea’s covert revenue operations, announcing five guilty pleas and more than $15 million in seized virtual currency connected to IT-worker fraud and state-sponsored hacking. Officials say the actions are part of a broader push to cut off funds supporting the DPRK’s weapons program.
According to newly unsealed court documents, U.S. and Ukrainian intermediaries helped North Korean IT workers infiltrate American companies by supplying stolen identities, falsified credentials, and U.S.-based proxy computers. These techniques created the appearance that overseas workers were employed domestically, allowing them to bypass routine vetting and compliance checks.
Investigators said the fraudulent employment schemes touched more than 136 U.S. companies, generated over $2.2 million in income for the DPRK regime, and compromised personal data belonging to at least 18 U.S. citizens.
$15M in Stolen Crypto Seized
In parallel civil forfeiture actions, the department moved to seize more than $15 million in virtual currency linked to APT38, a North Korean military hacking unit responsible for multimillion-dollar thefts from four international cryptocurrency platforms in 2023. U.S. authorities said they intercepted the funds while DPRK actors were still laundering the proceeds.
Officials emphasized that the seizures were designed to return stolen assets to U.S. companies and reinforce the message that North Korea’s use of crypto exchanges and remote work platforms is now a central focus of federal enforcement.
Key legal findings included:
• APT38 conducted coordinated thefts totaling several million dollars
• More than $15M in crypto proceeds were frozen and seized
• Funds are expected to be returned to victim platforms
Five Defendants Admit Guilt
The charges span three federal districts. In Georgia, three U.S. nationals—Audricus Phagnasay, Jason Salazar, and Alexander Paul Travis—pleaded guilty to wire-fraud conspiracy for supplying their identities and hosting employer-issued laptops to disguise foreign IT workers. Travis, who was on active military duty, earned $51,397 through the scheme.
In Washington, D.C., Oleksandr Didenko, a Ukrainian national, admitted to selling stolen U.S. identities to overseas workers, including North Koreans. Authorities recovered more than $570,000 in fiat and crypto tied to his operation.
And in Florida, Erick Ntekereze Prince pleaded guilty to running a staffing operation that placed overseas workers in U.S. companies using falsified credentials, earning over $89,000 in the process.
A Broader Federal Effort
The cases form part of the DPRK RevGen: Domestic Enabler Initiative, an ongoing collaboration between the Justice Department, FBI, and multiple U.S. Attorney’s Offices. Officials say the initiative aims to dismantle the global networks enabling Pyongyang’s cyber operations and illicit revenue streams.
The Justice Department warned that North Korea continues to exploit remote-work trends, stolen identities, and digital-asset platforms. Authorities urged U.S. companies to strengthen verification procedures for remote employees and remain alert to emerging cyber risks.
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