Nashville Man Indicted for Assisting North Korea’s Ballistic Weapons Programs Through IT Fraud Scheme

Nashville Man Indicted for Assisting North Korea’s Ballistic Weapons Programs Through IT Fraud Scheme

Tennessee Resident Matthew Knoot Indicted by DOJ

Matthew Isaac Knoot, a 38-year-old resident of Nashville, Tennessee, has been indicted on federal charges for allegedly aiding North Korea’s ballistic weapons programs through a fraudulent IT employment scheme. The U.S. Department of Justice (DOJ) released a statement detailing the charges, which allege that Knoot played a key role in helping North Korean workers secure illicit jobs at U.S. and British tech companies.

North Korea’s IT Employment Scheme

North Korea has been known to deploy thousands of skilled IT workers abroad annually, earning up to $300,000 each, with these funds being funneled back to support the country’s weapons of mass destruction (WMD) programs. Knoot is accused of facilitating this scheme by operating a “laptop farm” between July 2022 and August 2023. Through this operation, he allegedly assisted North Korean workers in obtaining employment by posing as U.S. citizens, using stolen identities, and hosting company laptops at his residence. He also reportedly installed unauthorized software on these laptops to maintain the deception and launder payments tied to North Korean and Chinese actors.

Financial Impact and Legal Consequences

The fraudulent activities orchestrated by Knoot reportedly cost the victim companies over $500,000. For his involvement, Knoot received an undisclosed monthly payment. The indictment against him includes multiple charges, such as aggravated identity theft and conspiracy to commit wire fraud. If convicted, Knoot could face up to 20 years in federal prison.

U.S. Attorney Henry C. Leventis for the Middle District of Tennessee emphasized the seriousness of the charges, stating that the indictment demonstrates the DOJ’s commitment to protecting national security interests.

North Korea’s Cryptocurrency Ties

North Korea’s involvement in illicit activities extends to the cryptocurrency space, where it has been linked to several high-profile hacks. The Lazarus Group, a notorious hacking collective associated with the North Korean government, has reportedly stolen over $3 billion in digital assets over the past six years. Additionally, Sinbad, a crypto mixer used by the DPRK to obscure illicit transactions, was sanctioned by the U.S. government last year.

As the investigation into Knoot’s activities continues, it remains unclear whether additional individuals will be charged in connection with North Korea’s latest scheme.

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