U.S. State Department Offers Reward for Information on North Korean IT Companies and Money Laundering Activities

The U.S. Department of State’s Rewards for Justice (RFJ) program has announced a reward of up to $5 million for information that disrupts financial mechanisms supporting the Democratic People’s Republic of Korea (DPRK). This initiative focuses on individuals involved in the exportation of North Korean workers, money laundering, and certain cyber activities that contribute to North Korea’s weapons proliferation efforts.

The U.S. government is seeking details about two North Korean-linked IT companies: Yanbian Silverstar Network Technology Co., Ltd., located in China, and Volasys Silverstar, based in Russia. These companies are involved in deceiving global businesses, including U.S. companies, by sending North Korean workers to work as freelance IT staff. The workers, who were placed in jobs under stolen or falsified identities, helped generate illicit funds for the DPRK through deceptive practices such as registering false domain names and creating fake employment records.

The individuals involved in managing and directing these operations are being targeted, including Jong Song Hwa, CEO of both companies, and several other key figures, such as Kim Ryu Song and Ri Kyong Sik, presidents of Yanbian Silverstar and Volasys Silverstar, respectively. From 2017 to 2023, these individuals, along with a network of associates, generated at least $88 million in illicit revenue for North Korea. This money was funneled through deceptive remote work arrangements and money transfers, often through shell companies, with funds eventually sent to DPRK-controlled accounts in China.

The U.S. Department of State emphasizes the importance of disrupting these financial networks and exposing the activities of those who enable the DPRK’s illegal financial operations. The program also highlights the role of individuals who have used fraudulent means, including acquiring and sending equipment like laptops with pre-installed malware, to extort payments from U.S. companies.

The Rewards for Justice program, in operation since 1984, has rewarded over $250 million to individuals whose information has led to significant national security breakthroughs, including the disruption of DPRK illicit financial activities. The department encourages anyone with relevant information to come forward, with tips being accepted through a secure Tor-based reporting channel.

This latest reward offer underscores the U.S. commitment to countering North Korea’s destabilizing actions and upholding international security standards.