
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has imposed sanctions on two individuals and four entities involved in North Korea’s illicit revenue generation through IT workers. These workers, operating globally, secure employment contracts while concealing their identities to generate funds for the regime’s weapons programs.
Key Points:
– North Korean government retains up to 90% of workers’ wages
– Annual revenue generated amounts to hundreds of millions of dollars
– Funds support weapons of mass destruction and missile programs
Sanctioned Entities:
1. Department 53 (Ministry of People’s Armed Forces)
2. Korea Osong Shipping Co
3. Chonsurim Trading Corporation
4. Liaoning China Trade Industry Co., Ltd
Sanctioned Individuals:
– Jong In Chol (Chonsurim’s DPRK IT worker delegation president in Laos)
– Son Kyong Sik (Korea Osong Shipping Co representative in China)
The scheme, active since 2018, involves:
– False identities for client communication
– Software development work for global companies
– Infiltration of cryptocurrency and Web3 companies
– Recruitment of U.S.-based individuals for laptop farm operations
Recent developments show an increase in extortion attempts, with workers stealing intellectual property and demanding cryptocurrency payments. The operation, known in cybersecurity circles as Famous Chollima, Nickel Tapestry, UNC5267, and Wagemole, represents one of North Korea’s many illegal revenue-generating methods.
The Treasury Department emphasizes its commitment to disrupting these networks, particularly given North Korea’s support of Russia’s Ukraine war and continued weapons program development.