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U.S. Offers $5 Million Reward for Information on North Korean IT Firms Accused of Money Laundering

WASHINGTON: The United States has announced a reward of up to $5 million for information on two North Korean IT firms accused of generating revenue to support Pyongyang through the exploitation of workers. The State Department identified the firms as Yanbian Silverstar Network Technology Co., Ltd. in China and Volasys Silverstar in Russia, and released the names of 14 people allegedly involved in the scheme, including the CEO of both companies. According to Yonhap News Agency, the State Department accused the IT firms of exporting North Korean workers to China and Russia, where they were employed as freelance IT workers under false pretenses. The firms allegedly laundered the earnings from these activities to benefit the Democratic People's Republic of Korea (DPRK). The State Department's release stated that the individuals involved used stolen or borrowed identities of U.S. persons to disguise their own, employing approximately 130 North Korean IT workers to generate at least $88 million in illicit revenue. The scheme purportedly involved applying for remote IT positions with U.S. businesses, using fraudulent domain registrations to deceive employers, and conspiring with U.S. citizens to obtain and misuse laptops. The perpetrators allegedly installed remote access programs on the devices and extorted payments by threatening to release sensitive information. This announcement follows a similar reward offer in July, when the department sought information on Rim Jong-hyok, a North Korean cyber actor targeting U.S. critical infrastructure, with a reward of up to $10 million. In May, the department offered up to $5 million for information on North Korean IT workers and their manager involved in a telework employment scheme using false U.S. identities.

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