US nationals admit guilt in North Korea employment fraud scheme

**U.S. Nationals Admit Guilt in North Korea Employment Fraud Scheme**

In a major development in the ongoing investigation into Nor...

In a major development in the ongoing investigation into North Korea’s global IT worker fraud network, several U.S. nationals have admitted guilt in a sophisticated scheme that enabled North Korean operatives to infiltrate American companies under false identities, defrauding hundreds of businesses and funneling millions of dollars back to Pyongyang.

Federal prosecutors announced on Friday that multiple U.S. c...

Federal prosecutors announced on Friday that multiple U.S. citizens—including an Arizona woman and a New Jersey man—have pleaded guilty or been sentenced for their roles in a years-long conspiracy that allowed North Korean IT workers to obtain remote employment at American firms, including Fortune 500 companies and nonprofit organizations. The scheme, which spanned more than half a decade, involved the use of stolen or fabricated identities, shell companies, and elaborate deception to conceal the true origins of the workers.

The most recent case centers on Zhenxing “Danny” Wang of New...

The most recent case centers on Zhenxing “Danny” Wang of New Jersey, who was arrested earlier this week and charged in a five-count indictment for his alleged involvement in a multi-year fraud that generated over $5 million in revenue for North Korea. Prosecutors say Wang and his co-conspirators helped North Korean IT workers secure remote jobs by providing them with fake credentials, registering financial accounts to receive illicit payments, and even hosting “laptop farms” in their homes to make it appear as though the workers were based in the United States.

In a separate but related case, an Arizona woman was sentenc...

In a separate but related case, an Arizona woman was sentenced to 102 months in prison for her role in a scheme that defrauded 309 U.S. businesses and two international companies, generating approximately $17 million for North Korea. According to court documents, she and her co-conspirators stole the identities of more than 60 U.S. residents and used them to apply for jobs, attend interviews, and collect salaries on behalf of North Korean nationals.

The Justice Department has also indicted 14 North Korean nat...

The Justice Department has also indicted 14 North Korean nationals for their roles in the broader scheme, which prosecutors say netted at least $88 million between 2017 and 2023. These individuals, many of whom worked for DPRK-controlled companies based in China and Russia, were ordered by their superiors to earn at least $10,000 per month. Some even participated in internal competitions, with bonuses awarded to top performers.

The fraud was not limited to salary theft. In several instan...

The fraud was not limited to salary theft. In several instances, North Korean IT workers stole sensitive company data—including proprietary source code—and threatened to leak it unless employers paid extortion fees. The stolen funds were then laundered through financial systems in the U.S. and China, ultimately benefiting the North Korean government.

U.S. authorities have seized more than $1.5 million and shut...

U.S. authorities have seized more than $1.5 million and shut down dozens of internet domains used to provide fake credentials to employers. Investigators have also highlighted the use of technological tools such as fake email addresses, social media accounts, and fictitious job references to facilitate the fraud.

The case has raised serious concerns about cybersecurity and...

The case has raised serious concerns about cybersecurity and the vulnerabilities of remote hiring practices. Some companies reportedly employed North Korean IT workers for years, unaware that their most talented employees were actually operating from overseas and funneling profits to a hostile regime.

“The scale and sophistication of this scheme are alarming,”...

“The scale and sophistication of this scheme are alarming,” said a senior Justice Department official. “These U.S. nationals played a critical role in enabling North Korea to exploit American businesses and fund its weapons programs. We are committed to holding all participants accountable.”

The admissions of guilt by U.S. nationals mark a significant...

The admissions of guilt by U.S. nationals mark a significant step in dismantling the network, but authorities warn that similar schemes may still be active. Companies are being urged to strengthen their hiring protocols and conduct more rigorous background checks, especially for remote positions.

As the investigation continues, federal agencies are working...

As the investigation continues, federal agencies are working with international partners to track down additional suspects and recover stolen assets. The case underscores the growing threat posed by state-sponsored cybercrime and the need for vigilance in an increasingly digital workforce.