US targets North Korean IT firms funding weapons programs with $5m bounty

The United States has announced a reward of up to $5 million for information on two North Korean IT firms accused of orchestrating a scheme to infiltrate U.S. companies and funnel money into Pyongyang’s weapons development.

The State Department revealed that between 2017 and 2023, approximately 130 North Korean workers secured IT jobs at unsuspecting U.S. firms, generating at least $88 million in illicit earnings. These funds, obtained under false pretenses, were allegedly used to support North Korea’s weapons of mass destruction programs.

The two companies at the center of the allegations, Yanbian Silverstar Network Technology Co., Ltd. in China and Volasys Silverstar in Russia, facilitated the placement of North Korean IT workers in global firms. Their operations were overseen by 14 individuals, including CEOs Jong Song Hwa, Kim Ryu Song, and Ri Kyong Sik.

“These IT firms engaged in the exportation of North Korean IT workers, managers, and support staff to Yanji in China’s Jilin Province and Vladivostok, Russia, to generate revenue by deceiving U.S. and other businesses worldwide,” the State Department said. “The companies then laundered their ill-gotten gains to benefit the DPRK.”

To avoid detection, the workers used stolen or borrowed identities of U.S. citizens and created fake websites that misled employers into believing they were affiliated with reputable firms. They also collaborated with U.S. individuals to acquire laptops, installing remote access software to extort payments from employers by threatening to leak sensitive data.

This bounty is part of the “Rewards for Justice” program, which offers incentives for information on terrorism, cybercrime, and financial networks supporting the North Korean regime.

The U.S. has maintained North Korea’s designation as a state sponsor of terrorism, citing its involvement in international assassinations and other acts. “The Secretary of State determined that the DPRK government repeatedly provided support for acts of international terrorism,” the State Department noted in its 2023 Country Reports on Terrorism.

Meanwhile, North Korea has not responded to the U.S. announcement. Pyongyang, under leader Kim Jong Un, has grown increasingly aligned with Moscow, casting doubt on prospects for renewed diplomatic engagement with Washington.

Efforts to curb North Korea’s weapons programs continue amid rising geopolitical tensions, with the State Department offering similar rewards earlier this year targeting North Korean cyber actors and IT workers.