The U.S. Justice Division charged 5 people in the present day, a U.S. Citizen lady, a Ukrainian man, and three overseas nationals, for his or her involvement in cyber schemes that generated income for North Korea’s nuclear weapons program.
They have been allegedly concerned between October 2020 and October 2023 in a marketing campaign coordinated by the North Korean authorities “to infiltrate U.S. job markets via fraud in an effort to lift income for the North Korean authorities and its illicit nuclear program.”
Two of them, Christina Marie Chapman and Oleksandr Didenko, have been arrested on Might 15 in Litchfield Park, Arizona, and in Poland on Might 7, 2024, with the DOJ now looking for Didenko’s extradition to the USA.
They have been each charged with conspiracy to defraud the USA, aggravated identification theft, and conspiracy to commit cash laundering, wire fraud, identification fraud, and financial institution fraud.
Three different overseas nationals, recognized solely by their aliases (Jiho Han, Haoran Xu, and Chunji Jin), have been additionally charged with conspiracy to commit cash laundering.
If convicted, Chapman faces a most of 97.5 years in jail, whereas Didenko’s most penalty can attain 67.5 years. Every of the John Does additionally faces a most penalty of 20 years.
“Chapman and her co-conspirators dedicated fraud and stole the identities of Americans to allow people primarily based abroad to pose as home, distant IT staff,” stated Nicole M. Argentieri, the pinnacle of the Justice Division’s Felony Division.
At present, the U.S. State Division introduced a reward of as much as $5 million for any data associated to Chapman’s co-conspirators, the North Korean IT staff charged in the present day, and their supervisor, solely often called Zhonghua.
North Koreans labored remotely through U.S. laptop computer farms
In accordance with the indictment, Chapman housed the North Korean IT staff’ computer systems in her own residence, making a “laptop computer farm” to make it seem as if her co-conspirators’ gadgets have been in the USA.
They have been employed as distant software program and utility builders with a number of Fortune 500 firms, together with an aerospace and protection firm, a significant tv community, a Silicon Valley expertise firm, and a high-profile firm.
They have been paid thousands and thousands for his or her work, and Chapman processed their paychecks from U.S. firms via her monetary accounts.
Didenko additionally ran an internet platform often called UpWorkSell (whose area was seized by the DOJ), knowingly offering providers to permit North Koreans to make use of false identities whereas attempting to find distant IT work positions.
“Didenko is alleged to have managed as many as roughly 871 proxy identities, offered proxy accounts for 3 freelance IT hiring platforms, and offered proxy accounts for 3 totally different cash service transmitters,” the DOJ stated.
“In coordination with co-conspirators, Didenko facilitated the operation of no less than three U.S.-based ‘laptop computer farms,’ internet hosting roughly 79 computer systems. Didenko despatched or acquired $920,000 in U.S.D. funds since July 2018.”
Their scheme compromised over 60 U.S. identities and affected greater than 300 U.S. firms. It additionally resulted in false tax liabilities for greater than 35 U.S. residents and generated no less than $6.8 million in income for abroad IT staff.
At present, the FBI additionally issued an advisory with extra data on how North Korea’s IT staff undermine the safety of firms that rent them and steering on how you can spot North Korean IT employee schemes.
Beforehand, the USA additionally printed joint advisories with overseas companions warning of North Korean IT employee schemes and sanctioned a number of organizations concerned in North Korea’s IT employee income technology schemes.