U.S. Court Orders Forfeiture of Some Cryptocurrency Linked to North Korean Overseas IT Workers

[Financial News] A U.S. court has ordered the forfeiture of some cryptocurrency linked to money laundering involving North Korean overseas information technology (IT) workers, U.S.-based North Korea-focused outlet NK News reported on the 7th (local time).
According to the report, Rudolph Contreras, a judge at the U.S. District Court for the District of Columbia, ruled on the 3rd that funds held in a cryptocurrency wallet with an address beginning “Ox81c4” should be forfeited to the U.S. government.
U.S. prosecutors said the wallet contained stablecoins worth $212,700 (approximately 285 million won). They claimed it held 158,123 USD Coin (USDC) and 54,574 Tether US Dollar (USDT), which they estimated represented the wages of at least 14 North Korean IT workers. USDC and USDT are stablecoins pegged to the U.S. dollar and therefore subject to relatively limited price volatility.
The ruling came as the United States Department of Justice (DOJ) pursues a lawsuit to forfeit cryptocurrency worth $7.74 million (1.038 billion won) linked to North Korean overseas workers.
In June last year, the DOJ filed a lawsuit seeking the forfeiture of North Korea-related digital assets seized or frozen by the U.S. government between 2022 and 2023.
Judge Contreras ruled in favor of the DOJ only with respect to some of the funds covered by the lawsuit. He denied forfeiture for cryptocurrency addresses other than “Ox81c4,” saying they had not been reasonably identified.
The funds seized or frozen by U.S. authorities included Binance accounts belonging to individuals named “SIM HYON SOP” and “Sang Man Kim,” whom the United States blacklisted in 2023.
SIM HYON SOP is accused of acting as an agent for Korea Kwangson Banking Corporation, which was sanctioned by the United States and the United Nations (UN) over its alleged ties to North Korea’s weapons of mass destruction (WMD) program. He was reportedly managing digital assets worth $24 million (approximately 32.2 billion won) that had been laundered.
SIM HYON SOP is also reportedly responsible for collecting and controlling the wages of North Korean IT workers. He was indicted in the United States on two counts of conspiracy to commit money laundering and is on the Federal Bureau of Investigation’s (FBI) wanted list. The DOJ is offering a $7 million (approximately 9.4 billion won) reward for information about him.
Sang Man Kim is based in Vladivostok, Russia, and is reportedly the head of JINYONG IT COOPERATION COMPANY, which is linked to North Korea’s Ministry of National Defense. He is accused of laundering funds belonging to North Korean IT workers operating in China, Russia, and the United Arab Emirates (UAE).

[email protected] International Affairs Correspondent Lee Seok-woo Reporter