The US government is taking strong action against a scheme that allowed North Korea to secretly send IT workers into American tech jobs using fake identities.
Officials say the money earned from these jobs is helping fund Kim Jong-un's missile programs.
On Tuesday, the US Treasury Department announced sanctions on two individuals and four companies tied to the scam.
One of them is Song Kum-hyok, a North Korean accused of stealing US citizens' personal information to create fake profiles for tech workers, Bloomberg said.
These workers then applied for jobs with US companies, pretending to be Americans.
According to the Treasury, most of these workers operate out of Russia and China and use popular websites for job hunting and freelance work. In some cases, they even snuck harmful software—known as malware—into company systems.
"This scheme helps North Korea earn money while avoiding international sanctions," said Deputy Treasury Secretary Michael Faulkender. "We're using every tool we have to stop it."
North Korea-linked operatives stole $1.6B out of $2.1B in crypto hacks this year alone.
— Mrinal (@mrinal_web3) July 9, 2025
Now, they're ditching hacks for deception: using fake identities to get jobs in U.S. crypto firms.
Sanctions just hit 6 involved parties. pic.twitter.com/tU2Xu6Hgcw
Read more: US Tech Sector Unknowingly Funding North Korea's Weapons Program Through Fake Hires: Report
North Korean Fake Worker Scheme Prompts Asset Freezes by US
The US has also sanctioned a Russian businessman, Gayk Asatryan, who allegedly hired dozens of North Korean workers through contracts with North Korean companies starting last year, CoinTelegraph said.
All American assets tied to these people and companies are now frozen. US citizens and businesses are also banned from working with them.
This isn't the first time the US has acted against this issue. Last month, the Justice Department charged nine people involved in similar schemes.
The State Department is also offering rewards—$5 million for tips that disrupt North Korea's financial scams, and $10 million for help finding people who attack US computer systems.
Cyber experts say North Korea is shifting away from hacking and more toward "deception-based" methods, such as fake job applications.
According to blockchain firm TRM Labs, North Korean-linked actors were behind $1.6 billion of the $2.1 billion stolen in crypto hacks in the first half of 2025.
In recent months, the US has tried to seize millions in crypto earnings believed to be tied to North Korean fraud. Some of these fake workers had already been caught posing as employees at American and Serbian tech firms.
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