Two U.S. Citizens Sentenced for Facilitating North Korean IT Worker Scheme

Recently, two U.S. citizens, Kejia Wang and Zhenxing Wang, both residents of New Jersey, were sentenced to seven and a half years and nine years in prison, respectively, for their involvement in a scheme to assist the North Korean government in placing remote IT workers in American companies.

The U.S. Department of Justice revealed that the duo provided infrastructure for the fraudulent operation, including managing “laptop farms” within the U.S. These farms allowed North Korean individuals to connect to the laptops and appear as if they were living and working in the country.

Details of the Scam

The fraudulent scheme resulted in North Korea profiting approximately $5 million. Co-conspirators were able to steal the identities of over 80 Americans and secure employment at more than 100 U.S. corporations, including Fortune 500 companies. This enabled North Korean IT workers not only to receive salaries but also to access trade secrets and source code, as per the DOJ.

John A. Eisenberg, the DOJ’s assistant attorney general for National Security, emphasized that the deception compromised national security by placing North Korean IT workers within U.S. companies and computer systems unknowingly.

Operational Details

Between 2021 and 2024, Kejia oversaw the management of laptop farms, while Zhenxing hosted laptops at his residence. The pair established shell companies with financial accounts tied to the fictitious IT workers to channel millions of dollars overseas. In return for their services, they received nearly $700,000, alongside four other facilitators.

One incident cited by the DOJ involved the theft of export-controlled data from a California-based AI company by fake IT workers.

Government Response

The U.S. government also announced rewards of up to $5 million for information that could aid in combating such schemes, including details on nine individuals who allegedly collaborated with Kejia and Zhenxing.

Combatting North Korean Schemes

This case represents the ongoing battle against North Korea’s extensive scheme involving fake IT workers infiltrating American and Western companies. The regime utilizes these fraudulent activities, alongside major crypto thefts, to fund its operations despite facing severe sanctions.

To combat this threat, some companies and recruiters have devised creative strategies, such as eliciting insults against Kim Jong-Un during interviews, a practice deemed illegal in North Korea. A recent viral video showcased an applicant struggling when asked to label Kim Jong Un as a “fat ugly pig,” eventually leading to the termination of the call.