In a bid to dismantle the financial networks that fuel North Korea's activities, including the "proliferation of weapons of mass destruction," the U.S. government has announced a $5 million reward for information on North Korean nationals infiltrating American tech companies and engaging in related cyber activities.
The bounty is being offered through the State Department's Rewards for Justice (RFJ) program, a national security initiative that has disbursed over $250 million to informants since its establishment under President Ronald Reagan in 1984.
According to RedState, the State Department declared on Thursday, "The financial reward was announced on the heels of the Department of Justice indicting 14 North Korean nationals on Wednesday for their involvement in an extortion and identity theft racket." The conspiracy, which unfolded from 2017 to 2023, encompassed identity theft, wire fraud, money laundering, and extortion, as per the Justice Department's press release.
Jeff Charles, in an earlier report, elucidated, "The defendants allegedly worked for North Korea-controlled companies Yanbian Silverstar and Volasys Silverstar, which operate out of China and Russia, respectively. The companies employed over 130 IT workers who generated at least $88 million for the Democratic Peoples Republic of Korea (DPRK) over six years." Deputy Attorney General Lisa Monaco further clarified that the North Korean government directs IT workers to secure employment through fraud, pilfer sensitive information from U.S. companies, and funnel money back to the DPRK.
Monaco also shed light on the indictment's role in exposing "their alleged sanctions evasion," while simultaneously serving as a cautionary tale to businesses globally. The defendants reportedly used stolen and counterfeit identities to secure remote IT work with U.S.-based companies and nonprofit organizations, using their positions to acquire sensitive information later used for extortion. If convicted, the defendants could face over two decades in prison.
This indictment and reward form part of a broader U.S. strategy to counteract the North Korean financial networks that circumvent U.S. sanctions. The ongoing investigation has already led to the freezing of millions of dollars in illicit funds and the shutdown of several websites linked to the crimes. The Justice Department is encouraging individuals with information to step forward, offering anonymous submission of tips via the RFJ website or a Tor-based reporting channel to ensure confidentiality for informants.
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