U.S. DOJ Pursues North Korea’s Illicit Money Machine, Seizes More Crypto – CoinDesk

Report on U.S. Actions Against Illicit Cryptocurrency Schemes and Alignment with Sustainable Development Goals

Introduction: Combating Illicit Financial Flows for Global Stability

The United States Department of Justice (DOJ) has reported significant progress in combating illicit financial schemes orchestrated by the Democratic People’s Republic of Korea (DPRK). These actions, which include multiple convictions and the seizure of substantial cryptocurrency assets, directly support the achievement of the United Nations Sustainable Development Goals (SDGs), particularly SDG 16, which aims to promote peace, justice, and strong institutions.

Upholding SDG 16: Peace, Justice and Strong Institutions

The DOJ’s recent enforcement activities represent a direct effort to curtail criminal operations that undermine global peace and security. Key actions include:

• Convictions: Five guilty pleas were secured from individuals who facilitated a scheme to place fraudulent North Korean information-technology workers in U.S. companies.
• Asset Seizure: Approximately $15 million in the cryptocurrency USDT was seized from sources linked to the North Korean military hacking group, Advanced Persistent Threat 38.
• Task Force Creation: A new “Scam Center Strike Force” was announced to dismantle international “pig-butchering” scams, with an initial seizure of $80 million in stolen funds.

These measures contribute to specific targets within SDG 16:

1. Target 16.4 (Reduce Illicit Financial Flows): By intercepting funds intended for the DPRK’s authoritarian regime and weapons programs, the DOJ directly combats illicit financial flows that threaten international stability.
2. Target 16.4 (Combat Organized Crime): The nationwide actions against both DPRK-linked operatives and international scam centers demonstrate a commitment to fighting all forms of transnational organized crime.
3. Target 16.a (Strengthen National Institutions): The coordinated efforts of the DOJ and the Federal Bureau of Investigation (FBI) highlight the strengthening of national institutions to prevent and combat crime effectively.

Addressing Economic and Labor Exploitation (SDG 8)

The scheme involving fraudulent IT workers is a significant concern for SDG 8, which promotes decent work and economic growth. The operation involved obtaining stolen U.S. identities to secure employment, thereby exploiting U.S. businesses and undermining fair labor markets.

• The FBI’s recommendation for companies to improve vetting processes for remote workers is a key step toward promoting secure working environments, in line with Target 8.8 (Protect Labour Rights).
• By prosecuting those who aid such schemes, authorities work to prevent labor exploitation and ensure the integrity of the job market.

Asset Recovery and Policy for Sustainable Governance

The recovery of stolen digital assets is a critical component of delivering justice. The DOJ has confirmed that victims will be compensated from the seized funds, aligning with the principles of justice and restitution central to SDG 16.

• The discussion surrounding the establishment of a U.S. strategic reserve for seized Bitcoin and other digital assets reflects an evolving policy approach to managing the proceeds of crime.
• If implemented, such a reserve could institutionalize the management of recovered assets, further strengthening the government’s capacity to combat financial crime and support its long-term economic stability, indirectly contributing to the broader sustainable development agenda.

Conclusion: The Role of Law Enforcement in Achieving Sustainable Development

The actions undertaken by the U.S. Department of Justice are integral to the global effort to achieve the Sustainable Development Goals. By disrupting illicit financial networks, prosecuting criminals, and recovering stolen assets, law enforcement agencies play a crucial role in building a more peaceful, just, and prosperous world. These efforts underscore the importance of strong institutions (SDG 16) and multi-agency partnerships (SDG 17) in addressing the complex challenges of the digital age.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

   The primary Sustainable Development Goal (SDG) addressed in the article is:

   • SDG 16: Peace, Justice and Strong Institutions

     This goal is central to the article, which focuses on promoting just, peaceful, and inclusive societies. The text details actions taken by the U.S. Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) to combat illicit financial activities, cybercrime, and organized crime. These efforts, such as prosecuting individuals aiding North Korea, seizing stolen cryptocurrency, and targeting international scam centers, directly contribute to building effective, accountable, and inclusive institutions at all levels and combating crime and illicit financial flows.

2. What specific targets under those SDGs can be identified based on the article’s content?

   Based on the article’s content, the following specific targets under SDG 16 can be identified:

   • Target 16.4: By 2030, significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets and combat all forms of organized crime.

     The article directly addresses this target by describing efforts to disrupt North Korea’s schemes to “pocket large amounts of cryptocurrency” and “generate millions of dollars to fund its authoritarian regime and weapons programs.” The seizure of assets from “cyber heists” and the targeting of “pig-butchering scams… run by Chinese criminal organizations” are clear actions against illicit financial flows and organized crime. Furthermore, the statement that “Victims will be compensated from seized money” aligns with the goal of strengthening the recovery and return of stolen assets.

   • Target 16.5: Substantially reduce corruption and bribery in all their forms.

     This target is relevant through the discussion of fraudulent activities. The article mentions individuals aiding North Korea in “getting U.S. jobs for fraudulent information-technology workers, obtaining stolen U.S. identities for the workers and helping mask their geographic origin.” These actions represent a form of corruption and deception aimed at circumventing legal and corporate systems. The announcement of “five guilty pleas” demonstrates a direct response to combat these corrupt practices.

   • Target 16.a: Strengthen relevant national institutions… to build capacity at all levels… to prevent violence and combat terrorism and crime.

     The article showcases the strengthening and functioning of national institutions. The actions of the “U.S. Department of Justice” and the “Federal Bureau of Investigation” in conducting probes, securing convictions, and seizing assets demonstrate the capacity of these institutions to combat complex, transnational crime. The creation of a new “Scam Center Strike Force” is a specific example of building institutional capacity to target emerging criminal threats.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

   Yes, the article mentions or implies several indicators that can be used to measure progress:

   • Indicator for Target 16.4: Total value of inward and outward illicit financial flows (related to Indicator 16.4.1).

     The article provides specific monetary values that serve as direct measures of intercepted illicit financial flows. It states that authorities seized “another $15 million in Tether’s USDT from North Korean sources” and “another $80 million in stolen funds” from pig-butchering scams. These figures quantify the scale of the illicit flows being combated.

   • Indicator for Target 16.4: Value of seized assets returned to victims (related to Indicator 16.4.2).

     The article explicitly mentions that “Victims will be compensated from seized money.” This implies a mechanism for returning stolen assets, and the amount of money returned to victims would serve as a direct indicator of progress in strengthening asset recovery.

   • Implied Indicator for Target 16.5: Number of persons brought to justice for corruption-related offenses.

     While not a formal UN indicator, the article’s mention of “five guilty pleas” and convictions serves as a practical measure of accountability and the effectiveness of the justice system in prosecuting individuals involved in fraudulent and corrupt schemes.

   • Implied Indicator for Target 16.a: Existence of independent national institutions to combat crime.

     The article’s description of the coordinated actions of the DOJ and FBI, and particularly the establishment of the “Scam Center Strike Force,” serves as a qualitative indicator of the strengthening of national institutions and their capacity to address specific forms of crime.

4. Table of SDGs, Targets, and Indicators

   SDGs	Targets	Indicators Identified in the Article
   SDG 16: Peace, Justice and Strong Institutions	16.4: Significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets and combat all forms of organized crime.	Value of seized illicit funds: “$15 million in Tether’s USDT” and “$80 million in stolen funds.” Commitment to return stolen assets: “Victims will be compensated from seized money.”
   SDG 16: Peace, Justice and Strong Institutions	16.5: Substantially reduce corruption and bribery in all their forms.	Number of persons held accountable for fraudulent schemes: “five guilty pleas announced by the DOJ.”
   SDG 16: Peace, Justice and Strong Institutions	16.a: Strengthen relevant national institutions… to combat… crime.	Demonstrated actions by national institutions (DOJ, FBI) to combat transnational crime. Establishment of a new specialized unit: “Scam Center Strike Force.”

Source: coindesk.com