The U.S. government is offering a reward of up to $5 million for information related to North Korean IT companies operating in China and Russia that are involved in the overseas deployment of North Korean IT workers and money laundering activities.
On December 12, the U.S. Department of State announced that it is seeking information under its “Rewards for Justice” program on activities related to the overseas deployment of North Korean laborers, money laundering, and support for the proliferation of North Korea’s weapons of mass destruction (WMD) programs.
The two companies of interest are Yanbian Silverstar, based in China, and Volasys Silverstar, based in Russia.
The Department of State also released the names of 14 key figures, including the CEOs and representatives of the two companies. These include Jong Song-hwa, CEO of Volasys, Kim Ryu-song, representative of Yanbian Silverstar, and Ri Kyong-sik, head of Volasys. Their names were disclosed in both English and Korean.
According to the State Department, these companies have dispatched North Korean IT workers and managers to locations in Yanji, Jilin Province, China, and Vladivostok, Russia. Disguised as freelancers, these workers secured jobs at companies worldwide, including in the United States.
The funds generated through these activities were laundered and funneled back to North Korea, providing financial support to the regime.
From April 2017 to 2023, the companies allegedly used stolen or borrowed identities of hundreds of U.S. citizens to facilitate the employment of around 130 North Korean IT workers, generating at least $88 million in revenue for North Korea.
In addition, the workers reportedly installed remote access programs on laptops provided by U.S. companies and later blackmailed the companies by threatening to expose sensitive business information online, extorting additional funds.
The announcement is part of the Rewards for Justice initiative, which offers financial incentives for information that aids in preventing terrorism, capturing terrorist leaders, and mitigating threats to U.S. security.
In July, the State Department issued a similar bounty for Rim Jong-hyok, a North Korean hacker affiliated with the notorious cybercrime group Andariel, a subgroup of the Lazarus hacking collective.
Earlier, in May, the department offered a $5 million reward for information on North Korean IT workers who had disguised themselves as employees of U.S. corporations, earning more than $6.8 million in illicit revenue.
BY YOUNGNAM KIM [kim.youngnam@koreadaily.com]
