North Korea Remote Workers Face Prison Risk for IT Services

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TWO U.S. NATIONALS SENTENCED FOR FACILITATING NORTH KOREAN REMOTE WORK SCHEMES

A recent string of convictions has highlighted the risks associated with employing IT workers from North Korea remotely. Between 2020 and 2024, at least two U.S. nationals, Matthew Isaac Knoot and Erick Ntekereze Prince, engaged in schemes that enabled North Korean IT workers to secure employment at numerous American companies.

KNOOT’S OPERATION RESULTED IN OVER $250,000 IN ILLEGAL PAYMENTS

According to court documents, Knoot’s operation, which ran from July 2022 to August 2023, resulted in over $250,000 in illicit payments from at least four American companies, while also causing over $500,000 in auditing and remediation costs.

According to Assistant Director Brett Leatherman of the FBI’s Cyber Division, “Hosting laptops for North Korean IT workers is a federal crime that directly impacts national security.” He added, “These sentences should serve as a deterrent to anyone considering such activities.”

PRINCE’S SCHEME GENERATED OVER $943,000 IN SALARY PAYMENTS

Prince’s scheme, which spanned from June 2020 to August 2024, generated over $943,000 in salary payments to North Korean workers, with most of the funds being transferred overseas.

SENTENCES SERVE AS A WARNING TO THOSE WHO MIGHT CONSIDER SIMILAR SCHEMES

Both Knoot and Prince were sentenced to 18 months in prison, with Knoot additionally ordered to pay $15,100 in restitution and forfeit another $15,100, while Prince was forced to forfeit $89,000. The convictions serve as a warning to those who might consider facilitating similar schemes, which compromise national security and expose U.S. businesses to risk.

FBI EFFORTS LEAD TO INCREASED AWARENESS AND COOPERATION

The FBI’s efforts to combat these types of schemes have led to increased awareness and cooperation among U.S. businesses and authorities, ultimately protecting national security and preventing further exploitation by malicious actors.