U.S. DOJ Pursues North Korea's Illicit Money Machine, Seizes More Crypto

Why It Matters

The enforcement actions curtail a key funding stream for North Korea’s weapons programs and signal heightened U.S. focus on crypto‑related sanctions evasion, while the potential creation of a government crypto reserve could reshape how seized digital assets are managed and deployed.

Summary

The U.S. Department of Justice announced five new guilty pleas linked to North Korean schemes that placed fraudulent IT workers in U.S. jobs and seized an additional $15 million in Tether (USDT) tied to the nation’s cyber‑heist group APT‑38. The convictions expose a broader effort by Pyongyang to evade sanctions, generate revenue for its regime, and launder proceeds through U.S. payroll and crypto platforms. The seizure follows earlier actions, including an $80 million recovery from pig‑butchering scams, and comes as the Trump administration explores a federal crypto reserve for forfeited digital assets. Officials note that congressional approval may be needed to formalize the proposed Bitcoin and broader digital‑asset reserves.