US nationals sentenced for aiding North Korea’s tech worker scheme

Source Domain: cyberscoop.com

Two New Jersey men were sentenced Wednesday for facilitating North Korea’s long-running scheme to plant operatives inside U.S. businesses as employees, generating more than $5 million in illicit revenue for the regime, the Justice Department said.

The U.S. nationals — Kejia Wang, also known as Tony Wang, and Zhenxing Wang, also known as Danny Wang — were part of a years-long conspiracy that placed operatives in jobs at more than 100 U.S. companies, including many Fortune 500 companies, based in 27 states and the District of Columbia.

The elaborate scheme involved shell companies posing as software development firms, money laundering, and espionage with national security implications. Operatives involved in the conspiracy stole sensitive files from a California-based defense contractor related to U.S. military technology controlled under International Traffic in Arms Regulations (ITAR), officials said.

“Democratic People’s Republic of Korea (DPRK) IT workers are not limited to revenue generation. When tasked, they can operationalize their placement and access to support strategic intelligence requirements, including intellectual property theft, network disruption or extortion,” Michael Barnhart, nation state investigator at DTEX, told CyberScoop.

While most of North Korea’s scheme is focused on revenue, it sometimes applies a dual-use approach, tasking certain privileged IT workers with malicious activity aiding other state-backed hacking groups, Barnhart added.

“Not all IT workers can be hackers but every North Korean hacker can or has been an IT worker,” he said. “This distinction matters for insider‑threat analysis because unlike typical fraudulent hires motivated by personal financial gain, IT workers can inflict national‑security‑level damage.”

Kejia Wang, 42, Zhenzing Wang, 39, and their co-conspirators stole the identities of at least 80 U.S. residents to facilitate the hiring of North Korean…

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