North Korea Denounces U.S. Accusations of Cyber Crime in IT Fraud Schemes
North Korean authorities have condemned the U.S. Department of Justice (DOJ) for what they describe as an “outrageous smear campaign.” This follows the DOJ’s revelation of numerous schemes allegedly orchestrated by North Korea to financially support its regime through remote IT work for American businesses.
Earlier this week, the DOJ disclosed that North Korean agents, with the assistance of individuals in the U.S., China, the United Arab Emirates, and Taiwan, secured positions with over 100 American firms, including several Fortune 500 companies.
According to the DOJ, the operation involved workers receiving laptops from U.S. firms that then enabled remote access for North Korean IT specialists. In another instance, North Korean operatives used fictitious identities to gain positions at a blockchain research company in Atlanta, Georgia, where they allegedly misappropriated more than $900,000 in cryptocurrency.
Alongside this announcement, the DOJ unveiled a five-count indictment against Zhenxing Wang, a U.S. citizen residing in New Jersey, who has since been detained.
The indictment states that Wang and his accomplices obtained remote IT jobs that generated over $5 million in revenue. Among those charged are Chinese nationals Jing Bin Huang, Baoyu Zhou, Tong Yuze, Yongzhe Xu, Ziyou Yuan, and Zhenbang Zhou, as well as Taiwanese nationals Mengting Liu and Enchia Liu. U.S. citizen Kejia “Tony” Wang, also from New Jersey, faces separate charges.
The North Korean state media outlet KCNA reported remarks from a spokesperson for the DPRK Foreign Ministry, who criticized the U.S. judicial actions against its citizens under the pretext of cybercrime allegations.
The spokesperson described the situation as “an absurd smear campaign” and a serious breach of sovereignty, asserting that it is part of the U.S.’s ongoing hostility toward North Korea, which has frequently highlighted a so-called “cyber threat” from the DPRK.
The spokesperson condemned accusations that the DPRK is responsible for cyber instability, claiming that it is the U.S. that poses a continuous threat to the cybersecurity of North Korea and other nations by politicizing cybersecurity issues for malicious purposes.
The indictment alleges that between 2021 and mid-2024, the defendants and their collaborators exploited the identities of over 80 individuals within the U.S. to obtain remote positions at more than 100 companies, leading to damages exceeding $3 million, including legal fees and network remediation costs.
Kejia and Zhenxing, along with at least four other U.S. associates, reportedly facilitated various aspects of the operation. They are accused of setting up shell companies with corresponding websites and financial accounts to create the illusion of legitimacy for foreign IT workers in the U.S. They allegedly funneled payments from U.S. companies to overseas co-conspirators.
In return for their services, Kejia, Zhenxing, and their U.S.-based co-conspirators allegedly received at least $696,000 from the IT workers involved.
Additionally, it was revealed that one of the companies potentially accessed was a defense contractor developing AI technologies, granting the scheme’s participants unauthorized access to sensitive data subject to International Traffic in Arms Regulations (ITAR).
The DOJ also reported that the FBI and Defense Criminal Investigative Service (DCIS) seized 17 websites linked to the fraud, along with 29 financial accounts containing substantial funds meant to launder revenues for the North Korean regime.
Furthermore, a separate five-count indictment was filed against four North Korean nationals—Kim Kwang Jin, Kang Tae Bok, Jong Pong Ju, and Change Nam II—accused of stealing virtual currency exceeding $900,000 from two companies and laundering those proceeds. All four remain at large and are wanted by the FBI.
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