US offers $15 million reward for info on North Korean nationals involved in global criminal network

The State Department announced Thursday it will pay up to $15 million for information leading to the arrest of seven North Korean nationals accused of operating criminal schemes that generate revenue for Pyongyang’s weapons programs, marking the latest effort to disrupt financing networks that have funneled money around sanctions.

The coordinated action that also involved the Justice and Treasury departments targets what officials describe as an extensive network involving cryptocurrency theft, fraudulent remote IT work, tobacco smuggling and other illicit activities that primarily target U.S. companies and citizens.

The largest reward, $7 million, is offered for Sim Hyon-sop, who prosecutors say led tobacco smuggling operations designed to generate U.S. dollars for North Korea. Six co-conspirators carry bounties ranging from $500,000 to $3 million each.

The announcement comes as U.S. officials increasingly focus on North Korea’s ability to circumvent international sanctions through criminal enterprises that have grown more sophisticated in recent years. Intelligence assessments indicate revenue from these schemes directly funds North Korea’s nuclear weapons and ballistic missile programs, which have expanded significantly under Kim Jong Un’s leadership.

One of the most lucrative schemes involves dispatching thousands of North Korean IT workers abroad, primarily to Russia and China, where they assume false identities to secure remote positions with U.S. companies. These workers often target high-paying technology jobs, with earnings sent back to North Korea to support government programs. 

In a related case, a U.S. citizen, Christina Marie Chapman, was sentenced to more than eight years in prison Thursday for facilitating a scheme that defrauded more than 300 U.S. companies, by helping North Korean IT workers obtain remote positions under false pretenses.

The Treasury Department simultaneously sanctioned Korea Sobaeksu Trading Company, which officials say has deployed IT workers to Vietnam, along with three additional North Korean nationals involved in similar schemes.

Research has indicated these operations generate hundreds of millions of dollars annually, providing North Korea with hard currency needed to purchase materials and technology for weapons development.

The use of criminal revenue to fund state weapons programs represents what analysts describe as a hybrid model where traditional organized crime intersects with state-sponsored activities to achieve strategic objectives.